Monetary Policy Is Not Always Systematic and Data-Driven: Evidence from the Yield Curve

Ales Bulir and Jan Vlcek

Working Papers from Czech National Bank, Research and Statistics Department

Abstract: Does monetary policy react systematically to macroeconomic innovations? In a sample of 16 countries - operating under various monetary regimes - we find that monetary policy decisions, as expressed in yield curve movements, do react to macroeconomic innovations and these reactions reflect the monetary policy regime. While we find evidence of the primacy of the price stability objective in the inflation-targeting countries, the links to inflation and the output gap are generally weaker and less systematic in money-targeting and multiple-objective countries.

Keywords: Monetary transmission; yield curve (search for similar items in EconPapers)
JEL-codes: E43 E52 G12 (search for similar items in EconPapers)
Date: 2019-09
New Economics Papers: this item is included in nep-cba, nep-mac and nep-mon
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https://www.cnb.cz/export/sites/cnb/en/economic-re ... wp/cnbwp_2019_03.pdf

Related works:
Journal Article: Monetary Policy is Not Always Systematic and Data-Driven: Evidence from the Yield Curve (2023)
Working Paper: Monetary Policy Is Not Always Systematic and Data-Driven: Evidence from the Yield Curve (2020)
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Persistent link: https://EconPapers.repec.org/RePEc:cnb:wpaper:2019/3

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