495 KB33 KB2026Marjanovič, Ajda1 spletni vir (1 datoteka PDF (14 str.))COBISSID:286416643ISBN:978-961-7230-46-8URN:URN:NBN:SI:doc-U8C4DYJQenBanka Slovenijeknjigedenarna politikaelektronske knjigeEvropska unijaMonetary policy conditions indicator in the euro area and the United States| unedited manuscript|This paper assesses the monetary policy stance in the euro area and the United States over the past two decades, a period characterized by challenging crises. Fol-lowing the Great Financial Crisis, central banks increasingly relied on unconventional tools alongside interest rates. However, compared to approaches that consider only the official policy rate, unconventional instruments complicate the assessment of the monetary policy stance. To address this issue, I construct a Monetary Policy Condi-tions Index (MCI) that combines medium-term interest rates and central bank bal-ance sheet measures, following the methodology of Mojon et al. (2025), using a Bayesian VAR estimated on monthly data from 2004 to 2025. I find that the euro area MCI is almost entirely driven by the interest rate, while the balance sheet compo-nent carries a much larger weight in the US. This difference reflects distinct objec-tives rather than differences in effectiveness. In the US, balance sheet policy focused on accommodation, while the ECB also used it to preserve monetary transmission across member states, which is reflected in the dynamics of the MCI. The findings have implications for how each central bank calibrates its policy stance going forwardTEXTknjigebooksSlovenian National E-content AggregatorNational and University Library of Slovenia