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dc.contributor.authorHayo, Bernden_US
dc.contributor.authorHofmann, Borisen_US
dc.date.accessioned2006-01-27en_US
dc.date.accessioned2010-02-12T14:23:19Z-
dc.date.available2010-02-12T14:23:19Z-
dc.date.issued2005en_US
dc.identifier.urihttp://hdl.handle.net/10419/29862-
dc.description.abstractThis paper compares the ECB’s conduct of monetary policy with that of the Bundesbank. Estimated monetary policy reaction functions for the Bundesbank (1979:4-1998:12) and the European Central Bank (1999:1-2004:5) show that, while the ECB and the Bundesbank react similarly to expected inflation, the ECB reacts significantly stronger to the output gap. Theoretical considerations suggest that this stronger response to the output gap may rather be due to a higher interest rate sensitivity of the German output gap than to a higher weight given to output stabilisation by the ECB. Counterfactual simulations based on the estimated interest rate reaction functions suggest that German interest rates would not have been lower under a hypothetical Bundesbank regime after 1999. However, this conclusion crucially depends on the assumption of an unchanged long-run real interest rate for the EMU period. Adjusting the Bundesbank reaction function for the lower long-run real interest rate estimated for the ECB regime reverses this conclusion.en_US
dc.language.isoengen_US
dc.publisherUniv., Fachbereich Wirtschaftswiss. Marburgen_US
dc.relation.ispartofseriesMarburger volkswirtschaftliche Beiträge 2005,02en_US
dc.subject.jelE5en_US
dc.subject.ddc330en_US
dc.subject.keywordTaylor ruleen_US
dc.subject.keywordmonetary policyen_US
dc.subject.keywordECBen_US
dc.subject.keywordBundesbanken_US
dc.subject.stwGeldpolitiken_US
dc.subject.stwTaylor-Regelen_US
dc.subject.stwSchätzungen_US
dc.subject.stwDeutschlanden_US
dc.subject.stwEU-Staatenen_US
dc.subject.stwReaktionsfunktionen_US
dc.titleComparing monetary policy reaction functions: ECB versus Bundesbanken_US
dc.typeWorking Paperen_US
dc.identifier.ppn506459837en_US
dc.rightshttp://www.econstor.eu/dspace/Nutzungsbedingungen-
Appears in Collections:Marburg Papers on Economics • Marburger Volkswirtschaftliche Beiträge, Universität Marburg

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