02
Sep
By Andrea Falconio and Julian Schumacher
Economic uncertainty has been elevated recently due to geopolitical conflicts and trade tensions. This blog post investigates whether, and how much, high economic uncertainty affects monetary policy transmission in the euro area.
Changes in interest rates make it cheaper or more expensive for businesses to get a loan or and for households to get a mortgage. But when the economic future is uncertain, businesses and households are less likely to invest in big, long-term plans...