in Central and Eastern Europe: Gliding on a Wind of Change

This paper surveys recent advances in empirical studies of the monetary trans-mission mechanism (MTM), with special attention to Central and Eastern Europe. In particular, while laying out the functioning of the separate channels in the MTM, it explores possible interrelations between different channels and their impact on prices and the real economy. The empirical ndings for Central and Eastern Eu-rope are then briey compared with results for industrialized countries, especially for the euro area. We highlight potential pitfalls in the literature and assess the rel-ative importance, and potential development, of the different channels, emphasizing the relevant asymmetries between Central and Eastern European countries and the euro area