Warning, Graphic: ECB Monetary Policy Transmission Mechanism

From Marc to Market:

A couple of weeks ago, we posted a graph that depicted the transmission mechanism of US monetary policy.   

 

We follow up that with a Great Graphic of how the ECB understands the transmission mechanism of its monetary policy.  

A compare and contrast essay of the two is stuff that a dissertation is made of.  For our purposes here, note that the output for the ECB is price developments.  For US monetary policy it is aggregate demand....MORE