Time-Varying Nairu and Real Interest Rates in the Euro Area
Camille Logeay and
No 24, Economics Working Papers from European Network of Economic Policy Research Institutes
This paper analyses the Nairu in the euro area and the influence that monetary policy had on its development. Using the Kalman-filter technique we find that the Nairu has varied considerably since the early 1970s. The Kalman-filter technique is applied here for the first time using explicit exogenous variables. In particular, real interest rates were found to explain a quarter of the increase in the Nairu between 1980 and 1995. This indicates the possibility of a long-run nonsuperne utrality of monetary policy.
Keywords: Nairu; Monetary Policy; Kalman Filter; Phillips curve; Superneutrality. (search for similar items in EconPapers)
JEL-codes: C32 E32 E52 (search for similar items in EconPapers)
Pages: 32 pages
New Economics Papers: this item is included in nep-eec and nep-mon
References: Add references at CitEc
Citations: View citations in EconPapers (27) Track citations by RSS feed
Downloads: (external link)
Working Paper: Time-varying Nairu and Real Interest Rates in the Euro Area (2003)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:epr:enepwp:024
Ordering information: This working paper can be ordered from
ENEPRI c/o CEPS Place du Congrès 1 1000 Brussels Belgium
Access Statistics for this paper
More papers in Economics Working Papers from European Network of Economic Policy Research Institutes ENEPRI c/o CEPS Place du Congrès 1 1000 Brussels Belgium. Contact information at EDIRC.
Bibliographic data for series maintained by CEPS ( this e-mail address is bad, please contact ).