Publisher's Synopsis
This publication is part of a set of 18 documents which have been prepared by H.M. Treasury to inform the assessment of the Government's five economic tests for Economic and Monetary Union (EMU) entry into the euro area. This study takes a wide-ranging approach to consider the workings of the UK transmission mechanism compared to other countries. Findings include that certain features of the UK economy, particularly in the housing market, suggest that the UK monetary mechanism may be stronger than that of the euro area. This study does not examine the broader question of mechanisms by which economies adjust to shocks as this issue is dealt with in another paper (ISBN 0118490133).
