EconPapers    
Economics at your fingertips  
 

Monetary Policy Reaction Functions: ECB versus Bundesbank

Bernd Hayo and Boris Hofmann

Macroeconomics from University Library of Munich, Germany

Abstract: We estimate monetary policy reaction functions for the Bundesbank (1979:4-1998:12) and the European Central Bank (1999:1-2003:7). The Bundesbank regime can be characterised, both before and after German reunification, by an inflation weight of 1.2 and an output weight of 0.4. The estimates for the ECB are 1.2, and 1, respectively. Thus, the ECB, while reacting similarly to expected inflation, puts significantly more weight on stabilising the business cycle than the Bundesbank did.

Keywords: Taylor rule; monetary policy; ECB; Bundesbank (search for similar items in EconPapers)
JEL-codes: E5 (search for similar items in EconPapers)
Date: 2003-12-19
Note: Type of Document -
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (12)

Downloads: (external link)
https://econwpa.ub.uni-muenchen.de/econ-wp/mac/papers/0312/0312007.pdf (application/pdf)

Related works:
Working Paper: Monetary policy reaction functions: ECB versus Bundesbank (2003) Downloads
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:wpa:wuwpma:0312007

Access Statistics for this paper

More papers in Macroeconomics from University Library of Munich, Germany
Bibliographic data for series maintained by EconWPA ( this e-mail address is bad, please contact ).

 
Page updated 2025-03-22
Handle: RePEc:wpa:wuwpma:0312007