policy reaction function is developed which allows for an influence of regional divergence. The empirical tests are based on … offer some first weak support for an impact of regional divergence in ECB decision making. The results further clarify that … concludes that the correct identification of a possible impact of regional divergence is important for the transparency issue. …

future interest rate, inflation, and output to discover the sources of individual interest rate forecast errors. Based on a …. However, although experts tend to overestimate the impact of inflation on future interest rates, perceptions of monetary … improved communication has reduced disagreement over the ECB's response to expected inflation during the financial crisis …

cycles or not. Using One-way- and Two-way-Anova techniques the results show that country-specific shocks are important to the … business cycles are possible because persistence in output growth differs across countries. …