Does Money Matter in the ECB Strategy? New Evidence Based on ECB Communication
Free University Berlin - Department of Economics; CESifo (Center for Economic Studies and Ifo Institute for Economic Research)
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)
KOF Swiss Economic Institute; CESifo (Center for Economic Studies and Ifo Institute for Economic Research); CESifo (Center for Economic Studies and Ifo Institute for Economic Research) - Ifo Institute for Economic Research
CESifo Working Paper Series No. 1652
We examine the role of money in the policies of the ECB, using introductory statements of the ECB President at the monthly press conferences during 1999-2004. Over time, the relative amount of words devoted to the monetary analysis has decreased. Our analysis of indicators of the monetary policy stance suggests that developments in the monetary sector, while somewhat more important in the latter half of the sample, only played a minor role most of the time. Our estimates of ECB interest rate decisions suggest that the ECB's words (monetary-sector based policy intentions) are not an important determinant of its actions.
Number of Pages in PDF File: 27
Keywords: ECB, communication, monetary policy
JEL Classification: E58, E52, E43working papers series
Date posted: February 23, 2006
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