@techreport{Clausen2003Bundesbank,
abstract = {Using a real-time data set for German GDP over the period from 1973 to 1998 we calculate
various measures of real-time output gaps and use these to calibrate and estimate Taylor-type
reaction functions for the Bundesbank. Most of the reaction functions we find fit the
Bundesbank's actual policy, as represented by the short-run interest rate, quite well. In contrast to
previous findings based on ex post revised data for the output gap, we find the reaction
coefficients to resemble quite closely those originally proposed by Taylor for some of our realtime
measures of the output gap. Broad monetary aggregates such as M3, in contrast, only played
a small role for the Bundesbank's interest rate decisions. Given the good record of the
Bundesbank in fighting inflation, the results give support to the use of the Taylor rule for
monetary policy.},
address = {K\"{o}ln},
author = {Jens R. Clausen and Carsten-Patrick Meier},
copyright = {http://www.econstor.eu/dspace/Nutzungsbedingungen},
keywords = {E52; E32; 330; German real-time data; output gap; monetary policy rules; Taylor-Regel; Geldpolitik; Sch\"{a}tzung; Deutschland},
language = {eng},
number = {2003/2},
publisher = {Universit\"{a}t zu K\"{o}ln, Institut f\"{u}r Wirtschaftspolitik (iwp)},
title = {Did the Bundesbank follow a Taylor rule? An analysis based on real-time data},
type = {IWP Discussion Paper},
url = {http://hdl.handle.net/10419/3141},
year = {2003}
}