Global Financial Crisis and Policies
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Abstract
Abstract
Leveraging the unique setting of unilateral euroisation, this paper examines the spillover effects of euro area monetary policy on Montenegro and Kosovo. Through the lens of a structural VAR model with block exogeneity, it shows that euro area monetary policy shocks can significantly influence output and inflation in these economies, albeit with a delayed response, while contributing only modestly to their overall business cycle fluctuations.
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@article{Krustev2026monetary,
title = {ECB monetary policy transmission to unilaterally euroised economies},
author = {Georgi Krustev},
journal = {Economics Letters},
year = {2026},
doi = {10.1016/j.econlet.2026.113242},
url = {https://doi.org/10.1016/j.econlet.2026.113242}
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