15 Pages Posted: 2 Jan 2011
Date Written: November 1, 2010
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 Rules, Taylor Principle
JEL Classification: E43, E58
Suggested Citation: Suggested Citation
Jensen, Henrik and Aastrup, Morten, What Drives the European Central Bank's Interest-Rate Changes? (November 1, 2010). Available at SSRN: https://ssrn.com/abstract=1733546 or http://dx.doi.org/10.2139/ssrn.1733546