ECB Policy Making and the Financial Crisis
Dutch Central Bank (DNB)
affiliation not provided to SSRN
Jan P. A. M. Jacobs
University of Groningen - Faculty of Economics and Business
Jakob De Haan
University of Groningen - Faculty of Economics and Business; De Nederlandsche Bank; CESifo (Center for Economic Studies and Ifo Institute for Economic Research)
December 1, 2010
De Nederlandsche Bank Working Paper No. 272
We estimate Taylor rule models for the euro area using Consensus Economics forecasts of inflation and output growth for the period 1998.6-2010.8. We first examine whether the recent financial crisis has affected ECB policies. Our results indicate that the ECB puts stronger emphasis on maintaining price stability than earlier point estimates suggested. Next, we analyse whether economic developments in individual euro area countries affect ECB decisions. Despite the diverging economic developments in the countries in the euro area, notably during the recent financial crisis, we do not find support for the view that policy decisions have been influenced by regional developments.
Number of Pages in PDF File: 20
Keywords: Taylor rule, ECB, regional influence, real time data
JEL Classification: C22, E52working papers series
Date posted: October 27, 2011 ; Last revised: October 28, 2011
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