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Is the View from the Eurotower Purely European? National Divergence and ECB Interest Rate Policy

Heinemann, Friedrich; Huefner, Felix P. - 2002

The official view on ECB monetary policy claims that monetary decisions are based solely on average data for the euro zone and that diverging regional developments are disregarded. However, experience from other two tier central banks and theoretical considerations suggest that this official...

Persistent link: https://www.econbiz.de/10010297739

Opting out of the Great Inflation: German monetary policy after the break down of Bretton Woods

Beyer, Andreas; Gaspar, Vítor; Gerberding, Christina; … - 2009

During the turbulent 1970s and 1980s the Bundesbank established an outstanding reputation in the world of central banking. Germany achieved a high degree of domestic stability and provided safe haven for investors in times of turmoil in the international financial system. Eventually the...

Persistent link: https://www.econbiz.de/10011605066

Does central bank communication really lead to better forecasts of policy decisions? : new evidence based on a Taylor rule model for the ECB

Sturm, Jan-Egbert; de Haan, Jakob - 2009

Nowadays, it is widely believed that greater disclosure and clarity over policy may lead to greater predictability of central bank actions. We examine whether communication by the European Central Bank (ECB) adds information compared to the information provided by a Taylor rule model in which...

Persistent link: https://www.econbiz.de/10010274048

Does central bank communication really lead to better forecasts of policy decisions? New evidence based on a Taylor rule model for the ECB

Sturm, Jan-Egbert; Haan, Jakob de - 2009

Persistent link: https://www.econbiz.de/10010285832

A case for interest rate inertia in monetary policy

Bask, Mikael - 2011

We argue that it is not necessary for the central bank to react to the exchange rate to have a desirable outcome in the economy. Indeed, when the Taylor rule includes contemporane-ous data on the variables in the rule, the central bank can disregard from the exchange rate as long as there is...

Persistent link: https://www.econbiz.de/10010321452

Imperfect Competition, Monetary Policy and Welfare in a Currency Area

Lombardo, Giovanni - 2002

intensiver ist. Die optimale Geldpolitik der Zentralbank der Währungsunion wird ermittelt und mit einer einfachen Taylor … auf die Wohlfahrt und die optimale Geldpolitik. Betrachtet werden zwei Möglichkeiten, wie die Wettbewerbsintensität am … die Geldpolitik effektiver sein, wenn die Länder größere Asymmetrien aufweisen. Diese Ergebnisse legen es nahe, dass die …

Persistent link: https://www.econbiz.de/10010295738

Towards a robust monetary policy rule for the euro area

Blattner, Tobias; Margaritov, Emil - 2010

Estimations of simple monetary policy rules are often very rigid. Standard practice requires that a decision is made as to which indicators the central bank is assumed to respond to, ignoring the data-rich environment in which policy-makers typically form their decisions. However, the choice of...

Persistent link: https://www.econbiz.de/10011605256

The Political and Technical Aspects of Controlling Inflation

Gros, Daniel - In: Intereconomics 58 (2023) 3, pp. 133-135

After almost four decades of price stability, inflation has recently approached historical highs. Initially driven by global energy and food price increases, the magnitude of the surge in inflation caught central banks and markets by surprise. Price pressures are now increasingly broadening to...

Persistent link: https://www.econbiz.de/10014334696

Optimal monetary policy in a small open economy with financial frictions

Merola, Rossana - 2010

I analyze how the introduction of financial frictions can affect the trade-off between output stabilization and inflation stability and whether, in the presence of financial frictions, the optimal outcome can be realized or approached more closely if monetary policy is allowed to react to...

Persistent link: https://www.econbiz.de/10010299951

The Taylor Rule: A Spurious Regression?

Österholm, Pär - 2003

This paper investigates the econometric properties of the Taylor (1993) rule applied to U.S., Australian and Swedish data to judge its empirical relevance. Little attention has been paid to the time series properties of the data underlying interest rate rules, nor the estimations themselves,...

Persistent link: https://www.econbiz.de/10010321545