What Drives the European Central Bank's Interest-Rate Changes?
17 Pages Posted: 27 Dec 2010
There are 2 versions of this paper
What Drives the European Central Bank's Interest-Rate Changes?
Number of pages: 15
Posted: 02 Jan 2011
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342
Date Written: December 2010
Abstract
We show that the ECB's interest rate changes during 1999-2010 have been mainly driven by changes in economic activity in the Euro area. Changes in actual or expected future HICP inflation play a minor, if any, role.
Keywords: ECB monetary policy, Taylor principle, Taylor rules
JEL Classification: E43, E58
Suggested Citation: Suggested Citation
Aastrup, Morten and Jensen, Henrik, What Drives the European Central Bank's Interest-Rate Changes? (December 2010). CEPR Discussion Paper No. DP8160, Available at SSRN: https://ssrn.com/abstract=1729578
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