Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/19500
Authors: 
Ruth, Karsten
Year of Publication: 
2004
Series/Report no.: 
Discussion paper Series 1 / Volkswirtschaftliches Forschungszentrum der Deutschen Bundesbank 2004,33
Abstract: 
As of today, estimating interest rate reaction functions for the Euro Area is hampered by the short time span since the conduct of a single monetary policy. In this paper we circumvent the common use of aggregated data before 1999 by estimating interest rate reaction functions based on a panel including actual EMU Member States. We find that exploiting the cross-section dimen- sion of a multi-country panel and accounting for cross-country heterogeneity in advance of the single monetary policy pays off with regard to the estimated reaction functions' ability to describe actual interest rate dynamics. We retrieve a panel reaction function which is demonstrated to be a valuable tool for evaluating episodes of monetary policy since 1999.
Subjects: 
Monetary Policy
Reaction Function
Euro Area
Panel Data
JEL: 
E43
E58
C33
Document Type: 
Working Paper

Files in This Item:
File
Size
481.88 kB





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.