Arbeitspapier

Did the Fed and ECB react asymmetrically with respect to asset market developments?

This paper studies the monetary policy of the Federal Reserve (Fed) and the Bundesbank / European Central Bank (ECB) with respect to stock or/and foreign exchange markets from 1979 to 2009. I find that Fed policy changed over time, dependent on the chairman of the Fed. During the Greenspan era stock markets mattered for the Fed. In this period, the Fed lowered interest rates when stock prices fell, but did not raise interest rates in the boom. This asymmetry potentially put a downward pressure on interest rates. For the ECB, the exchange rate to the dollar played a role in monetary policy decisions until 2006. While I do not find evidence of asymmetric monetary policy with respect to the stock market, the ECB may be argued to indirectly have followed asymmetric US monetary policy via the exchange rate channel.

Sprache
Englisch

Erschienen in
Series: Working Paper ; No. 103

Klassifikation
Wirtschaft
Monetary Policy
Policy Objectives; Policy Designs and Consistency; Policy Coordination
Thema
monetary policy
Taylor rule
asset prices
Geldpolitik
Taylor-Regel
Börsenkurs
Aktienmarkt
Wechselkurs
Devisenmarkt
USA
Deutschland
Eurozone

Ereignis
Geistige Schöpfung
(wer)
Hoffmann, Andreas
Ereignis
Veröffentlichung
(wer)
Universität Leipzig, Wirtschaftswissenschaftliche Fakultät
(wo)
Leipzig
(wann)
2012

Handle
Letzte Aktualisierung
10.03.2025, 11:42 MEZ

Datenpartner

Dieses Objekt wird bereitgestellt von:
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.

Objekttyp

  • Arbeitspapier

Beteiligte

  • Hoffmann, Andreas
  • Universität Leipzig, Wirtschaftswissenschaftliche Fakultät

Entstanden

  • 2012

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