While high inflation certainly reflects global factors related to the rise in energy costs and supply bottlenecks, each central bank faces structures which are unique to their jurisdictions and influence the transmission of monetary policy. Chart 5: Ratio between bonds and loans for firms in the euro area versus United States (ratio of outstanding amounts)  Sources: ECB and Federal Reserve Board.
Note: The latest observation is for the second quarter of 2022. As a more bank-based system, the euro area might entail a more delayed reaction through the interest rate channel, as compared to countries where firms finance themselves predominantly with marketbased debt (Chart 5).