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http://hdl.handle.net/10419/19683
  

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dc.contributor.authorGerberding, Christinaen_US
dc.contributor.authorSeitz, Franzen_US
dc.contributor.authorWorms, Andreasen_US
dc.coverage.temporal1979-1998en_US
dc.date.accessioned2009-01-28T16:01:58Z-
dc.date.available2009-01-28T16:01:58Z-
dc.date.issued2007en_US
dc.identifier.urihttp://hdl.handle.net/10419/19683-
dc.description.abstractThe paper derives the monetary policy reaction function implied by money growth targeting. It consists of an interest rate response to deviations of the inflation rate from target, to the change in the output gap, to money demand shocks and to the lagged interest rate. In the second part, it is shown that this type of inertial interest rate rule characterises the Bundesbank's monetary policy from 1979 to 1998 quite well. This result is robust to the use of real-time or ex post data and to the consideration of serially correlated errors. The main lesson is that, in addition to anchoring long-term inflation expectations, monetary targeting introduces inertia and history-dependence into the monetary policy rule. This is advantageous when private agents have forward-looking expectations and when the level of the output gap is subject to persistent measurement errors.en_US
dc.language.isoengen_US
dc.relation.ispartofseriesDiscussion paper Series 1 / Volkswirtschaftliches Forschungszentrum der Deutschen Bundesbank 2007,06en_US
dc.subject.jelE58en_US
dc.subject.jelE52en_US
dc.subject.jelE43en_US
dc.subject.ddc330en_US
dc.subject.keywordMonetary policyen_US
dc.subject.keywordTaylor ruleen_US
dc.subject.keywordmoney growth targetsen_US
dc.subject.keywordhistory dependenceen_US
dc.subject.stwZinspolitiken_US
dc.subject.stwRegelgebundene Politiken_US
dc.subject.stwGeldmengeen_US
dc.subject.stwGeldpolitiken_US
dc.subject.stwReaktionsfunktionen_US
dc.subject.stwSch├Ątzungen_US
dc.subject.stwDeutschlanden_US
dc.titleMoney-based interest rate rules: lessons from German dataen_US
dc.typeWorking Paperen_US
dc.identifier.ppn528421840en_US
dc.rightshttp://www.econstor.eu/dspace/Nutzungsbedingungen-
dc.identifier.repecRePEc:zbw:bubdp1:5560-
Appears in Collections:Discussion Paper Series 1: Economic Studies, Deutsche Bundesbank

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