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Has the European Central Bank Followed a Bundesbank Policy? Evidence from the Early Years

Has the European Central Bank Followed a Bundesbank Policy? Evidence from the Early Years
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Year:    2002

Author:    Smant, David J. C.

Credit and Capital Markets – Kredit und Kapital, Vol. 35 (2002), Iss. 3 : pp. 327–343

Abstract

This paper compares the actual Euro-area money-market interest rate with a hypothetical rate derived from the pre-1999 Bundesbank reaction function. The conclusion is that, after an initial period of lower than expected interest rates, the ECB has at least since mid-2000 set the interest rate consistent with the Bundesbank’s old policy rule. (JEL E58, E43)

Journal Article Details

Publisher Name:    Global Science Press

Language:    Multiple languages

DOI:    https://doi.org/10.3790/ccm.35.3.327

Credit and Capital Markets – Kredit und Kapital, Vol. 35 (2002), Iss. 3 : pp. 327–343

Published online:    2002-03

AMS Subject Headings:    Duncker & Humblot

Copyright:    COPYRIGHT: © Global Science Press

Pages:    17

Author Details

Smant, David J. C.

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Section Title Page Action Price
David J. C. Smant: Has the European Central Bank\rFollowed a Bundesbank Policy?\rEvidence from the Early Years 327
I. Introduction 327
II. Previous Estimates of the Bundesbank Reaction Function 328
III. The ECB Interest Rate and Bundesbank Reaction Function 330
1. Estimating the Bundesbank Reaction Function 330
2. ECB Monetary Policy Since 1 January 1999 336
IV. Conclusion 341
References 342
Summary: Has the European Central Bank Followed a Bundesbank Policy? Evidence from the Early Years 343
Zusammenfassung: Hat die Europäische Zentralbank eine Bundesbankpolitik verfolgt? Beweise aus den ersten Jahren 343
Résumé: La Banque Centrale Européenne a-t-elle suivi la politique de la Bundesbank? Evidence provenant d'années précédentes 343