Financial integration and the transmission of monetary policy in the euro area

We study how financial integration shapes the transmission of monetary policy to consumer prices and output in the euro area. Using local projections, we document that the effect of financial integration is continuous: greater integration systematically strengthens the pass-through of monetary policy. When integration falls to low levels—around the first quartile of its historical distribution— transmission to both prices and output becomes statistically and economically insignificant. The amplification pattern is pervasive across member states and more pronounced in peripheral economies.

Financial integration and the transmission of monetary policy in the euro area

We study how financial integration shapes the transmission of monetary policy to consumer prices and output in the euro area. Using local projections, we document that the effect of financial integration is continuous: greater integration systematically strengthens the pass-through of monetary policy. When integration falls to low levels—around the first quartile of its historical distribution— transmission to both prices and output becomes statistically and economically insignificant. The amplification pattern is pervasive across member states and more pronounced in peripheral economies.

The metaverse is ushering in a new era of behind-the-scenes exploitation

Pools for the extraction of lithium in Salinas Grandes, Jujuy, Argentina Brester IrinaFrom ancient slavery to the factory floor, progress has often relied on the exploitation of human beings. We might like to believe those days are well behind us. But in the digital age, AI and the metaverse risk repeating that pattern with new forms of invisible labour and inequality.

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