scholarly journals US-Euro Area Monetary Policy Interdependence - New Evidence from Taylor Rule Based VECMs

2009 ◽  
Author(s):  
Yuhua Cui ◽  
Ansgar Hubertus Belke
Keyword(s):  
Monetary Policy ◽  
Euro Area ◽  
Taylor Rule ◽  
Rule Based ◽  
New Evidence

scholarly journals US-Euro Area Monetary Policy Interdependence: New Evidence from Taylor Rule-based VECMs

World Economy ◽  
2010 ◽  
Vol 33 (5) ◽  
pp. 778-797 ◽  
Author(s):  
Ansgar Belke ◽  
Yuhua Cui
Keyword(s):  
Monetary Policy ◽  
Euro Area ◽  
Taylor Rule ◽  
Rule Based ◽  
New Evidence

The Taylor Rule and Monetary Policy in the Euro Area

2004 ◽  
Author(s):  
Jean-Stéphane Mésonnier ◽  
Jean-Paul Renne
Keyword(s):  
Monetary Policy ◽  
Euro Area ◽  
Taylor Rule

scholarly journals Monetary Policy Transmission in the Euro Area: New Evidence from Micro Data on Firms and Banks

2003 ◽  
Vol 1 (2-3) ◽  
pp. 731-742 ◽  
Author(s):  
Jean-Bernard Chatelain ◽  
Michael Ehrmann ◽  
Andrea Generale ◽  
Jorge Martínez-Pagés ◽  
Philip Vermeulen ◽  
...  
Keyword(s):  
Monetary Policy ◽  
Euro Area ◽  
Micro Data ◽  
Monetary Policy Transmission ◽  
Policy Transmission ◽  
New Evidence

scholarly journals Does one size fit all? A Taylor-rule based analysis of monetary policy for current and future EMU members

2008 ◽  
Vol 40 (2) ◽  
pp. 193-199 ◽  
Author(s):  
C. Moons ◽  
A. Van Poeck
Keyword(s):  
Monetary Policy ◽  
Taylor Rule ◽  
Rule Based

scholarly journals ANALYSIS OF THE ECB MONETARY POLICY MATCH FOR THE NEEDS OF THE EURO AREA COUNTRIES NEEDS

Ekonomika ◽  
2013 ◽  
Vol 92 (3) ◽  
pp. 41-58
Author(s):  
Tomas Reichenbachas
Keyword(s):  
Monetary Policy ◽  
Interest Rate ◽  
Interest Rates ◽  
Euro Area ◽  
Taylor Rule ◽  
Currency Area ◽  
The Face ◽  
Asymmetric Shock ◽  
The Interest Rate ◽  
The One

Abstract. In this paper, using the Taylor rule (Taylor, 1993), the European Central Bank (ECB) monetary policy in 2000–2012, as well as individual interest rate needs of the euro area (EA) countries are analysed. It is assumed that the estimated Taylor rule interest rates are optimal for individual members. We have analysed whether the actual ECB interest rates and the calculated rates are different and have become more balanced towards individual countries’ needs. The work focuses attention on the last period (2008–2012) when the EA faced economic problems and an asymmetric shock. The analysis shows controversial results: on the one hand, the interest deviation mean decreases (just a little), but an increasing gap between individual needs can be seen: some countries are becoming increasingly divorced from the general EA needs. It makes them very vulnerable, and there is a risk that these countries in the face of asymmetric challenges can be “left behind” by the ECB focusing on the EA as a whole. Also, in this paper, the stationarity of the calculated deviations is analysed to help understand their nature. This approach is new, and the author is unaware of similar works. Analysis of the optimal interest rate dynamics has revealed that Germany needed the interest rates that were opposite to the needs of Spain and Greece and susceptible to divergence, so this led to the ECB difficulties in determining the proper interest for all countries’ needs. The EA as a currency area is most optimal for Belgium, Cyprus, Finland, France, Italy, and the Netherlands from the interest rate setting perspective.Key words: the Taylor rule, optimal monetary policy, asymmetric shocks, optimal currency area

The Taylor Rule: A Useful Monetary Policy Benchmark for the Euro Area?

1999 ◽  
Vol 2 (1) ◽  
pp. 85-116 ◽  
Author(s):  
Gert Peersman ◽  
Frank Smets
Keyword(s):  
Monetary Policy ◽  
Euro Area ◽  
Taylor Rule

scholarly journals Asset Prices as Indicators of Euro Area Monetary Policy: An Empirical Assessment of Their Role in a Taylor Rule

2007 ◽  
Vol 20 (1) ◽  
pp. 39-59 ◽  
Author(s):  
Pierre L. Siklos ◽  
Martin T. Bohl
Keyword(s):  
Monetary Policy ◽  
Euro Area ◽  
Asset Prices ◽  
Taylor Rule ◽  
Empirical Assessment

scholarly journals WAS THE INTEREST RATE POLICY OF THE ECB TOO LOOSE? INSIGHT FROM A SIMPLE TAYLOR RULE

2021 ◽  
Vol 9 (1) ◽  
pp. 19-28
Author(s):  
Behailu Shiferaw Benti ◽  
Keyword(s):  
Monetary Policy ◽  
Interest Rate ◽  
Central Bank ◽  
Taylor Rule ◽  
Policy Framework ◽  
Economic Variables ◽  
Rule Based ◽  
Interest Rate Policy ◽  
The Difference ◽  
The Interest Rate

The interest setting of a central bank can be explained using a rule-based monetary policy. A rulebased monetary policy framework considers major economic variables to make a recommended interest rate. In an economy, the fluctuations in major economic variables are vital indicators that signal an action from the central bank. In this paper, we scrutinize the short-term interest rate setting of the European Central Bank (ECB) based on the observed economic conditions. We have based our analysis on a simple Taylor rule. The investigation includes evidence and implication from a selected time period to reflect on the interest rate setting practice followed. For comparison purposes, the applicability and validity of a rule-based monetary policy are then analyzed for the US relying on the interest rate setting of the Federal Reserve. Our empirical findings confirm that the interest rate adjustments in the two central banks go along with the recommendations from a simple Taylor rule. Finally, taking the difference between the interest rate settings of the two banks, an empirical analysis is made to identify whether this difference can be attributed to the difference in simple Taylor rule recommendations.

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