Monetary Policy and the Flow of Funds in the Euro Area

A Network Analysis of Sectoral Accounts: Identifying Sectoral Interlinkages in G-4 Economies

“…First, the data provide information on the borrowing and lending activities of different economic sectors and credit cycles have been found to have a major influence on economic performance and, thus, on monetary and fiscal policy. For example, Bonci (2012) shows estimating a VAR with euro area data that, after a contractionary monetary policy shock, the amount of bank loans to the real sector decreases while the amount of nonbank loans increases, households increase precautionary savings, and the government's budget deficit increases.…”

The ECB’s Non-Standard Monetary Policy Measures: The Role of Institutional Factors and Financial Structure

“…Carpenter et al (2012) analyse the beneficiaries of the asset purchases by the Federal Reserve by sector in the US flow-of-funds accounts. Bonci (2011) analyses the transmission of a contractionary monetary policy shock in the euro area. Bindseil and Winkler (2012) analyse the role of central banks as providing liquidity buffers to the banking system and/or security markets during the financial crisis, thereby pre-empting self-defeating fire-sales and collateral shortage.…”

Bank loan supply shocks and alternative financing of non‐financial corporations in the euro area

“…However, they neither include the full range of alternative financing sources nor do they consider possible differences across countries. Bonci (2014) adds flow‐of‐funds variables to a small structural VAR model for the euro area one‐at‐a‐time and identifies a monetary policy shock using a Cholesky decomposition. The responses of firms’ different external financing sources, however, turn out to be mostly not statistically significant and his approach does not account for possible interactions among the variables.…”