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Monetary policy when one size does not fit all

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  • Fernanda Nechio

Abstract

The European Central Bank recently raised its target interest rate for the first time since the 2008 financial crisis. When compared with a simple interest rate rule, this rate hike appears consistent with the euro area's nascent economic recovery and rising inflation. However, economic conditions vary greatly among the countries in the euro area and the ECB's new target rate may not be suitable for all of them.

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File URL: http://www.frbsf.org/publications/economics/letter/2011/el2011-18.html
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File URL: http://www.frbsf.org/publications/economics/letter/2011/el2011-18.pdf
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Bibliographic Info

Article provided by Federal Reserve Bank of San Francisco in its journal FRBSF Economic Letter.

Volume (Year): (2011)
Issue (Month): june13 ()
Pages:

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Handle: RePEc:fip:fedfel:y:2011:i:june13:n:2011-18

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Keywords: Monetary policy - Europe ; European Central Bank;

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Cited by:
  1. S. Devrim Yilmaz & Burak Saltoglu, 2013. "Why is it so Difficult and Complex to Solve the Euro Problem?," Centre for Growth and Business Cycle Research Discussion Paper Series 180, Economics, The Univeristy of Manchester.
  2. Sergio Cesaratto, 2012. "Controversial and novel features of the Eurozone crisis as a balance of payment crisis," Department of Economics University of Siena 640, Department of Economics, University of Siena.
  3. Oliver Landmann, 2011. "On the Macroeconomics of European Divergence," CESifo Forum, Ifo Institute for Economic Research at the University of Munich, vol. 12(2), pages 19-25, 07.

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