 Does one size fit all? A Taylor-rule based analysis of monetary policy for current and future EMU membersC. Moons and Andre Van Poeck () Applied Economics, 2007, vol. 40, issue 2, 193-199 Abstract: This article uses the Taylor rule to examine the appropriateness of European Central Bank (ECB) interest rate policy for the initial European Monetary Union (EMU) members and the 10 new EMU member states some of whom are expected to join the Eurozone in 2006-2007. Specifically it addresses three questions. (1) Are there differences between the interest rate aggregated from the Taylor interest rates of individual member states in the euro area and the interest rate set by the ECB? (2) For which countries do the desired interest rates according to the original Taylor rule and the interest rate of the euro area differ most and in which respect? (3) The last question is whether the interest rate gaps change over time. We find that the ECB's policy does not fit individual EMU members equally well and this result is unlikely to be changed with the addition of the 10 new members, which will have only a marginal effect on the ECB interest rate stance. Date: 2007 Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:taf:applec:v:40:y:2007:i:2:p:193-199 Ordering information: This journal article can be ordered from DOI: 10.1080/00036840600749763 Access Statistics for this article Applied Economics is currently edited by Anita Phillips More articles in Applied Economics from Taylor & Francis Journals |
Is your work missing from RePEc? Here is how to contribute.
Questions or problems? Check the EconPapers FAQ or send mail to .
EconPapers is hosted by the
School of Business at Örebro University.