How the European Central Bank decided its early monetary policy
Abstract: The main goal in this paper is to detect the mechanisms that should rationally stimulate the decision making-policies of the European Central Bank. This is carried out under the framework of theoretical principles of interest rate rules. Firstly, we deduce a set of logically advisable guidelines for the strategy actually developed by this central bank. Then, we contrast a wide set of hypotheses with reference to those variables the ECB take into account on deciding its monetary policy, with a flexible treatment regarding the number of months of advance or delay in the explanatory variables. The results lead us to the conclusion that the ECB, besides adopting a smooth strategy, especially bears in mind the expected core inflation rate, with a reaction coefficient adjusted to that initially proposed by Taylor. The economic growth rate, though it has a significant positive coefficient, matters relatively little and is backward looking. Finally, we evaluate up to what point the behavio
- Standort
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Deutsche Nationalbibliothek Frankfurt am Main
- Umfang
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Online-Ressource
- Sprache
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Englisch
- Anmerkungen
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Postprint
begutachtet (peer reviewed)
In: Applied Economics ; 39 (2007) 7 ; 927-936
- Klassifikation
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Wirtschaft
- Ereignis
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Veröffentlichung
- (wo)
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Mannheim
- (wann)
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2007
- Urheber
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Garcia-Iglesias, Jesus M.
- DOI
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10.1080/00036840500461931
- URN
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urn:nbn:de:0168-ssoar-239721
- Rechteinformation
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Open Access unbekannt; Open Access; Der Zugriff auf das Objekt ist unbeschränkt möglich.
- Letzte Aktualisierung
-
25.03.2025, 13:51 MEZ
Datenpartner
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Beteiligte
- Garcia-Iglesias, Jesus M.
Entstanden
- 2007