The Transmission of Euro Area Monetary Policy to Financially Euroised Countries

This paper provides a comprehensive analysis of the interest rate pass-through euro area monetary policy to retail rates outside area, contributing literature on consequences unofficial financial euroisation and transmission channels spillovers. The results suggest that in long run, more than one third all euroised countries central, eastern south-eastern Europe (CESEE) are linked shadow rate. Compared policy, share cointegration domestic is lower, suggesting central banks with independent can only partially control `euro part´ channel. Furthermore, shocks fast persistently transmitted into which constitutes an additional channel international shock transmission. JEL Classification: C22, C32, E43, E52, F42