01832cas a2200253 a 4500 AALejournalIMF000339 230101c9999 xx r poo 0 0eng d 5.00 USD 9781451974751 1018-5941 BD-DhAAL BD-DhAAL Levy, Joaquim. Aspects of the Monetary Transmission Mechanism Under Exchange Rate Targeting : The Case of France / Joaquim Levy, Ioannis Halikias. Washington, D.C. : International Monetary Fund, 1997. 1 online resource (38 pages) IMF Working Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students This paper examines monetary transmission in France using the vector autoregression methodology. Interest rates are decomposed into external and domestic components, and a nonrecursive contemporaneous structure is used to identify the system. Innovations in the external component are found to have a significant impact on economic activity, while innovations in the domestic premium have a statistically negligible effect, suggesting that interest rate hikes in defense of the franc may have had a smaller impact on the economy than usually thought. The paper also discusses some implications of Economic and Monetary Union and provides evidence concerning the importance of the credit channel in France. Mode of access: Internet Halikias, Ioannis. IMF Working Papers; Working Paper ; No. 1997/044 Full text available on IMF http://elibrary.imf.org/view/journals/001/1997/044/001.1997.issue-044-en.xml IMF e-Library