Monetary policy in Europe vs the US: what explains the difference?

Harald Uhlig ()

MPRA Paper from University Library of Munich, Germany

Abstract: This paper compares monetary policy in the US and EMU during the last decade, employing an estimated hybrid New Keynesian cash-in-advance model, driven by five shocks. It appears that the difference between the two monetary policies between 1998 and 2006 is due to both surprises in productivity as well as surprises in wage demands, moving interest rates in opposite directions in Europe and the US, but not due to a more sluggish response in Europe to the same shocks or to different monetary policy surprises.

Keywords: ECB; Fed; monetary policy; EMU-US differences; DSGE model; hybrid NK model (search for similar items in EconPapers)
JEL-codes: C11 E51 E52 E58 (search for similar items in EconPapers)
Date: 2007-07-26
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

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Related works:
Working Paper: Monetary policy in Europe vs the US: what explains the difference? (2009)
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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:14119

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