Baxa, Jaromír; Horváth, Roman; Vašíček, Bořek - In: Journal of Financial Stability 9 (2013) 1, pp. 117-138
We examine whether and how selected central banks responded to episodes of financial stress over the last three decades. We employ a recently developed monetary-policy rule estimation methodology which allows for time-varying response coefficients and corrects for endogeneity. This flexible...