Monday, June 17, 2013

Warning, Graphic: ECB Monetary Policy Transmission Mechanism

From Marc to Market:
A couple of weeks ago, we posted a graph that depicted the transmission mechanism of US monetary policy.   
 
We follow up that with a Great Graphic of how the ECB understands the transmission mechanism of its monetary policy.  
A compare and contrast essay of the two is stuff that a dissertation is made of.  For our purposes here, note that the output for the ECB is price developments.  For US monetary policy it is aggregate demand....MORE