Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/19492 
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dc.contributor.authorGerberding, Christinaen
dc.contributor.authorWorms, Andreasen
dc.contributor.authorSeitz, Franzen
dc.date.accessioned2009-01-28T15:58:56Z-
dc.date.available2009-01-28T15:58:56Z-
dc.date.issued2004-
dc.identifier.urihttp://hdl.handle.net/10419/19492-
dc.description.abstractPapers estimating the reaction function of the Bundesbank generally find that its monetary policy from the 1970s to 1998 can well be captured by a standard Taylor rule according to which the central bank responds to the output gap and to deviations of inflation from target, but not to monetary growth. This result is at odds with the Bundesbank's claim that it followed a strategy of monetary targeting. This paper analyses whether this apparent contradiction is due to (a) the use of ex post data which do not necessarily match policy makers? real-time information sets and (b) the omission of important explanatory variables. Accordingly, we compile a real-time data set for Germany including the Bundesbank?s own estimates of potential output and use it to reestimate the Bundesbank?s reaction function. We find that the use of real-time data considerably changes the results. Moreover, when adding the change in the output gap as well as deviations of money growth from target to the set of explanatory variables, we find that both variables are highly significant. This suggests that the Bundesbank took its monetary targets seriously, but also responded to deviations of expected inflation and output growth from target.en
dc.language.isoengen
dc.publisher|aDeutsche Bundesbank |cFrankfurt a. M.en
dc.relation.ispartofseries|aDiscussion Paper Series 1 |x2004,25en
dc.subject.jelE52en
dc.subject.jelE43en
dc.subject.jelE58en
dc.subject.ddc330en
dc.subject.keywordMonetary policyen
dc.subject.keywordTaylor ruleen
dc.subject.keywordreal-time dataen
dc.subject.keywordBundesbanken
dc.subject.stwGeldpolitiken
dc.subject.stwReaktionsfunktionen
dc.subject.stwTaylor-Regelen
dc.subject.stwSchätzungen
dc.subject.stwDeutschlanden
dc.titleHow the Bundesbank really conducted monetary policy: An analysis based on real-time data-
dc.typeWorking Paperen
dc.identifier.ppn396201458en
dc.rightshttp://www.econstor.eu/dspace/Nutzungsbedingungenen
dc.identifier.repecRePEc:zbw:bubdp1:2291en

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