Taylor Rules for the Euro Area: The Issue of Real-Time Data

44 Pages Posted: 8 Jun 2016

See all articles by Dieter Gerdesmeier

Dieter Gerdesmeier

European Central Bank (ECB)

Barbara Roffia

European Central Bank (ECB)

Date Written: 2004

Abstract

Recently, a number of studies have made an attempt to deal with the key issue of the incompleteness of information available to the central bank when taking its monetary policy decisions. This study adds to this literature by tackling the problem with regard to the euro area. The analysis is based on the simplistic assumption of the central bank following a simple monetary policy rule ?-la-Taylor. Along the lines of work suggested by Orphanides, the study tries to assess whether estimates of reaction functions which are carried out using revised data for the euro area can convey a misleading message in terms of policy recommendations.

Keywords: Taylor Rules, Reaction Functions, Monetary Policy, Euro Area, Real Time Data

JEL Classification: F41, E58

Suggested Citation

Gerdesmeier, Dieter and Roffia, Barbara, Taylor Rules for the Euro Area: The Issue of Real-Time Data (2004). Bundesbank Series 1 Discussion Paper No. 2004,37. Available at SSRN: https://ssrn.com/abstract=2785082

Dieter Gerdesmeier (Contact Author)

European Central Bank (ECB) ( email )

Sonnemannstrasse 22
Frankfurt am Main, 60314
Germany

Barbara Roffia

European Central Bank (ECB) ( email )

Sonnemannstrasse 22
Frankfurt am Main, 60314
Germany

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