The effects of monetary policy are transmitted to the economy through changes in money and/or changes in interest rates. Most of the recent studies based on VAR indicate the existence of "monetary puzzles" in their empirical results. A puzzle exists when the effects of monetary policy on...

Inflation targeting has been a key objective of the European Monetary Union. This article presents empirical evidence indicating that this macroeconomic objective has been successfully achieved. However, despite expectations that inflation control would provide the foundation for robust and...

This paper examines the responses of share prices in Belgium, Britain, France and Germany to the influences of major international share markets, domestic output and interest rates. The empirical results of the study indicate positive and significant responses of share prices to movements of...

The effect of fiscal measures on private investment is examined using variance decompositions derived from the error correction model. The empirical results of the study provide little support for the importance of fiscal measures in explaining variations of private investment. Output and...

Real interest rates are influenced by internal economic policies and also by movements of real rates in larger economies. The latter has become more influential as a result of the integration of global financial markets in the 1980s and 1990s. The empirical results of this study show that the US...