(ECB) to study optimal monetary policy in the Euro area (for instance Smets and Wouters, 2004a, 2004b) typically assume … price shocks. Two-country models exist at the ECB (e.g. de Walque, Smets, Wouters, 2005) but they overlook asset price … remained true for the ECB, at least so far. Using closed economy models to analyze monetary policy in the Euro is thus …

This Paper discusses interest rate setting by the ECB between 1999 and 2004. I develop from the Monthly Bulletins … Bulletins to guide the choice of variables for the analysis. The results show that the ECB reacts strongly to economic sentiment …

of ECB-style monetary cross-checking and show that it can generate substantial stabilization benefits in the event of …

equilibrium interest rates. We formulate a novel characterization of ECB-style monetary cross-checking and show that it can … deviations of long-run money growth helps the central bank to overcome this bias. Our argument in favour of ECB-style cross …

private agents to be successful--and much of this communication is channeled through the media. This is especially true for … public. Using the case of the European Central Bank (ECB), the paper analyses the favorableness with which monetary policy … information communicated by the ECB. There are, however, also indications of a critical monitoring role assumed by the media …