Clausen, Volker; Hayo, Bernd:
Monetary Policy in the Euro Area--Lessons from the First Years
2005
In: International Economics and Economic Policy, Band 1 (2005), S. 349 - 364
Artikel/Aufsatz in Zeitschrift / Fach: Wirtschaftswissenschaften
Titel:
Monetary Policy in the Euro Area--Lessons from the First Years
Autor(in):
Clausen, Volker im Online-Personal- und -Vorlesungsverzeichnis LSF anzeigen; Hayo, Bernd
Erscheinungsjahr
2005
Erschienen in:
International Economics and Economic Policy, Band 1 (2005), S. 349 - 364
ISSN
WWW URL
WWW URL

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 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 analyse actual ECB policy with interest rate projections using Bundesbank reaction functions and euroland data.