Monetary Policy Rules in the Run-Up to the EMU

26 Pages Posted: 8 Oct 2008

See all articles by Georgios E. Chortareas

Georgios E. Chortareas

University of Athens - Faculty of Economics; University of Essex - Department of Accounting, Finance & Management; King's College London

Abstract

We characterize central bank behavior in the euro area during the run-up to the European Economic and Monetary Union (EMU) era by estimating Taylor rule-type reaction functions at both the individual and aggregate level. We focus on whether national monetary policies during the run-up to the EMU were responding to economic developments according to their own policy rules or to a broader, euro area-wide, policy rule. To consider the last possibility we examine whether national monetary policies were responding to German interest rates. Finally, we compare the performance of the estimated with imposed policy rules.

Suggested Citation

Chortareas, Georgios, Monetary Policy Rules in the Run-Up to the EMU. Metroeconomica, Vol. 59, Issue 4, pp. 687-712, November 2008. Available at SSRN: https://ssrn.com/abstract=1279714 or http://dx.doi.org/10.1111/j.1467-999X.2008.00321.x

Georgios Chortareas (Contact Author)

University of Athens - Faculty of Economics ( email )

8 Pesmazoglou street
GR-10559 Athens
Greece
+(30) 210 3689805 (Phone)
+(30) 210 3689810 (Fax)

University of Essex - Department of Accounting, Finance & Management ( email )

Wivenhoe Park
Colchester CO4 3SQ
United Kingdom

King's College London ( email )

Strand
London, England WC2R 2LS
United Kingdom

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