The Taylor Curve: International Evidence

Semih Çekin, Rangan Gupta and Eric Olson ()
Additional contact information
Eric Olson: College of Business, University of Tulsa, Tulsa, Oklahoma, United States

No 202034, Working Papers from University of Pretoria, Department of Economics

Abstract: We use the Taylor curve to gauge deviations of monetary policy from an efficiency locus for the United Kingdom (UK) and the four largest economies of the eurozone (Germany, France, Italy, Spain) for the period 2000-2018. For this purpose, we use shadow interest rates, which is a common metric for both conventional and unconventional monetary policies, and the newly proposed Hamilton-filter to measure output gap, which improves upon the drawbacks of the traditionally used Hodrick-Prescott filter. Our findings suggest that deviations in the UK mostly occurred amid the global financial crisis and the post-Brexit period, whereas eurozone members experienced more volatile deviations around 2001, during the global financial crisis and the eurozone sovereign debt crisis.

Keywords: Taylor curve; Monetary policy; eurozone (search for similar items in EconPapers)
JEL-codes: C32 E31 E58 (search for similar items in EconPapers)
Pages: 19 pages
Date: 2020-05
New Economics Papers: this item is included in nep-cba, nep-eec, nep-mac and nep-mon
References: Add references at CitEc
Citations:

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
Journal Article: The Taylor curve: international evidence (2021)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:pre:wpaper:202034

Access Statistics for this paper

More papers in Working Papers from University of Pretoria, Department of Economics Contact information at EDIRC.
Bibliographic data for series maintained by Rangan Gupta ().