With the creation of the euro area in 1999 and the adoption of a single monetary policy by the ECB for countries in that area, there is a need to understand how monetary policy influences factors such as output, investment and prices, both in the euro area as a whole and in the specific countries. This book is the most significant research effort to date to address this question, and is the result of several years work by the Monetary Transmission Network, a group set up by the ECB at its