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An Empirical Analysis of the Changing Role of the German Bundesbank after 1983

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Author Info
Juselius, Katarina

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Abstract

A cointegrated VAR model describing a small macroeconomic system consisting of money, income, prices, and interest rates is estimated on split sample data before and after 1983. The monetary mechanisms were found to be significantly different. Before 1983, the money supply seemed controlable and expansion or contraction of money supply had the expected effect on prices, income, and interest rates. After 1983, the conventional mechanisms no longer seemed to work. The empirical analysis pointed to the crucial role of the bond rate in the system, particularly for the more recent period. Copyright 1996 by Blackwell Publishing Ltd

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Publisher Info
Article provided by Department of Economics, University of Oxford in its journal Oxford Bulletin of Economics & Statistics.

Volume (Year): 58 (1996)
Issue (Month): 4 (November)
Pages: 791-819
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Handle: RePEc:bla:obuest:v:58:y:1996:i:4:p:791-819

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  1. Bruneau, C. & Jondeau, E., 1998. "Long-Run Causality, with an Application to International Links Between Long-Term Interest Rates," Documents de Travail 53, Banque de France. [Downloadable!]
  2. Paolo PAESANI, 2003. "Will the Monetary Pillar Stay? A Few Lessons from the UK," Economics Working Papers ECO2003/10, European University Institute. [Downloadable!]
  3. Francesco Carlucci & Alessandro Girardi, 2004. "National Specifities And Monetarypolicy Transmission In Europe," Working Papers 73, Sapienza University of Rome, Department of Public Economics. [Downloadable!]
  4. Luetkepohl, Helmut & Wolters, Juergen, 2001. "The Transmission of German Monetary Policy in the Pre-Euro Period," CESifo Working Paper Series CESifo Working Paper No. , CESifo Group Munich. [Downloadable!]
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