Interest Rate Setting by the Fed, the ECB, the Bank of Japan and the Bank of England Compared

Dieter Gerdesmeier, Francesco Mongelli and Barbara Roffia

Comparative Economic Studies, 2010, vol. 52, issue 4, 549-574

Abstract: In this paper we compare the policy responsiveness of the Federal Reserve System, the European Central Bank, the Bank of Japan and the Bank of England. At first glance we find substantial differences in the frequency and amplitude of monetary policy decisions. Differences in the actual implementation of monetary policy are, however, less pronounced when seen through the ‘lenses’ of diverse specifications of monetary policy rules – including a variant of the growth rule and a specification accounting for asymmetric preferences. In fact, all four central banks seem to pursue their respective price stability objective. The observed similarities might be due, inter alia, to the fact that they operate in four of the world's largest and most open economies, and are, therefore, subject to relatively similar domestic but also international economic fundamentals.

Date: 2010
References: Add references at CitEc
Citations:

Downloads: (external link)
http://www.palgrave-journals.com/ces/journal/v52/n4/pdf/ces201015a.pdf Link to full text PDF (application/pdf)
http://www.palgrave-journals.com/ces/journal/v52/n4/full/ces201015a.html Link to full text HTML (text/html)
Access to full text is restricted to subscribers.

Related works:
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:pal:compes:v:52:y:2010:i:4:p:549-574

Ordering information: This journal article can be ordered from
http://www.springer. ... cs/journal/41294/PS2

Access Statistics for this article

Comparative Economic Studies is currently edited by Nauro Campos

More articles in Comparative Economic Studies from Palgrave Macmillan, Association for Comparative Economic Studies Contact information at EDIRC.
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().