In this paper, I study how the implementation of the European Monetary Union (EMU), which involves the adoption of a single currency and a common monetary policy by all members, impacted its core members (Germany, Spain, France and Italy). Specifically, I examine how the implementation of the EMU affected the core members’ experience with macroeconomic shocks and consequently, how effective a common monetary policy is in meeting their individual economic objectives. I use SVARs (Structural Vector Autoregressions) to model the core members’ experience with EMU integration. Using SVARs, I generate impulse response graphs (IRGs) to illustrate how macroeconomic shocks propagate through the monetary transmission mechanisms (MTMs) of the different core EMU countries
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