| Author (Person) | Hayo, Bernd, Hofmann, Boris |
|---|---|
| Series Title | ZEI Working Papers |
| Series Details | No B24, 2003 |
| Publication Date | 2003 |
| Content Type | Journal | Series | Blog |
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Abstract: We estimate monetary policy reaction functions for the Bundesbank (1979:4-1998:12) and the European Central Bank (1999:1-2003:7). The Bundesbank regime can be characterised, both before and after German reunification, by an inflation weight of 1.2 and an output weight of 0.4. The estimates for the ECB are 1.2, and 1, respectively. Thus, the ECB, while reacting similarly to expected inflation, puts significantly more weight on stabilising the business cycle than the Bundesbank did. |
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| Source Link | Link to Main Source http://www.zei.uni-bonn.de/dateien/working-papaer/B03-24.pdf |
| Subject Categories | Economic and Financial Affairs, Politics and International Relations |
| Countries / Regions | Europe |
