Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/39487
Authors: 
Hayo, Bernd
Hofmann, Boris
Year of Publication: 
2003
Series/Report no.: 
ZEI working paper B 24-2003
Abstract: 
We estimate monetary policy reaction functions for the Bundesbank (1979:4-1998:12) and the European Central Bank (1999:1-2003:7). The Bundesbank regime can be characterised, both before and after German reunification, by an inflation weight of 1.2 and an output weight of 0.4. The estimates for the ECB are 1.2, and 1, respectively. Thus, the ECB, while reacting similarly to expected inflation, puts significantly more weight on stabilising the business cycle than the Bundesbank did.
Subjects: 
Taylor rule
monetary policy
ECB
Bundesbank
JEL: 
E5
Document Type: 
Working Paper

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