Standard Taylor rules revisited: A cross country study for European countries

In this paper we want to estimate basic Taylor rules with a cross country study approach for European countries before the reorganization of the system of central banks. We compare basic and extended Taylor rules to give a hint if the exchange rate plays a significant role in the decision making of monetary policy. Fixed Effects, GMM and SGMM estimators are used to check for robustness. The obtained results adumbrate that there may be an influence of exchange rate changes on the monetary policy decision making process but the results are not fully robust and deliver only a weak tendency.

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Year of publication:	2009
Authors:	Eschenhof, Sabine
Publisher:	Darmstadt : Technische Universität Darmstadt, Department of Law and Economics
Subject:	Geldpolitik \| Taylor-Regel \| Politische Entscheidung \| Wechselkurs \| Schätzung \| EU-Staaten \| Cross Country Study \| Taylor Rules \| Exchange Rate \| FE Estimation \| SGMM Estimation

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Series:	Darmstadt Discussion Papers in Economics ; 196
Type of publication:	Book / Working Paper
Type of publication (narrower categories):	Working Paper
Language:	English
Other identifiers:	629761957 [GVK] hdl:10419/43136 [Handle] RePEc:zbw:darddp:dar_40391 [RePEc]
Classification:	C32 - Time-Series Models ; E52 - Monetary Policy (Targets, Instruments, and Effects) ; F31 - Foreign Exchange
Source:	EconStor

Persistent link: https://www.econbiz.de/10010272255