The monetary authority, which in the case of the European Economic and Monetary Union (EMU) is the European Central Bank (ECB), has among other things, the obligation to determine the monetary policy, aiming to influence basic parameters of the economy like the level of prices. In this paper the author tries to identify the impact of the monetary policy of the ECB on credit provision of European economies through the mortgage credit channel, including during the period of the crisis. More specifically, we employ data for the loans of commercial banks to households for housing purposes after a contractionary monetary policy by the monetary authority (increase of the main interest rate). Given that the mortgage channel has not been adequately studied during the crisis period for EU member states, this paper will contribute towards covering this gap in the literature.

You can read the working paper (in Greek) here.