Arbeitspapier
Comparing monetary policy reaction functions: ECB versus Bundesbank
This paper compares the ECBs 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.
- Sprache
-
Englisch
- Erschienen in
-
Series: Marburger Volkswirtschaftliche Beiträge ; No. 2005,02
- Klassifikation
-
Wirtschaft
- Thema
-
Taylor rule
monetary policy
ECB
Bundesbank
Geldpolitik
Taylor-Regel
Schätzung
Deutschland
EU-Staaten
Reaktionsfunktion
- Ereignis
-
Geistige Schöpfung
- (wer)
-
Hayo, Bernd
Hofmann, Boris
- Ereignis
-
Veröffentlichung
- (wer)
-
Philipps-Universität Marburg, Fachbereich Wirtschaftswissenschaften
- (wo)
-
Marburg
- (wann)
-
2005
- Handle
- Letzte Aktualisierung
-
10.03.2025, 11:44 MEZ
Datenpartner
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.
Objekttyp
- Arbeitspapier
Beteiligte
- Hayo, Bernd
- Hofmann, Boris
- Philipps-Universität Marburg, Fachbereich Wirtschaftswissenschaften
Entstanden
- 2005
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