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, we conduct time series analyses for Germany, Italy, and Spain. We find that when manufacturing firms’ interest costs drop … interest rate policy has worked better for boosting inflation in Italy and Spain than in Germany. …
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Although designed to support monetary policy, two crucial aspects of the central bank framework can disconnect the monetary policy transmission: banks' access to central bank deposits and Quantitative Easing (QE). We show how both hinder the monetary policy transmission through the main...
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