Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/39450
Authors: 
Clausen, Volker
Hayo, Bernd
Year of Publication: 
2002
Series/Report no.: 
ZEI working paper B 09-2002
Abstract: 
This paper investigates in a consistent semi-structural empirical framework three current issues of monetary policy in the euro area. First, regarding policy transmission we offer a three-stage procedure to combine the efficient estimation of economic structure prior to EMU with current ECB monetary policy. Second, we test whether the regime change leads – before or after – EMU to structural instability. Third, we investigate the stance of monetary policy in Europe. We compare a “counterfactual” ECB reaction function based on average interest rates prior to EMU with actual ECB policy. Furthermore, we compare actual ECB policy with interest rate projections using Bundesbank reaction functions and euroland data.
Subjects: 
European Monetary Union
Monetary policy
Semi-structural modelling
Reaction function
Taylor rule
Transmission mechanism
JEL: 
E52
F41
Document Type: 
Working Paper

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