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Lessons from the ECB experience: Frankfurt still matters! Author info | Abstract | Publisher info | Download info | Related research | Statistics Zeno Rotondi ()
Giacomo Vaciago () (DISCE, Università Cattolica)
This paper compares the European Central Bank’s conduct of monetary policy (1999-2005) with that of the Bundesbank (after the German Unification: 1990-1998) in order to test the hypothesis of an ECB with “Bundesbank’s preferences” put forward in the theoretical literature (Alesina and Grilli 1993, Fatum 2006). Econometric tests and simulations based on monetary policy reaction functions show that the continuation of the former Bundesbank regime is supported by the data. Given this empirical evidence we discuss the lessons for future Monetary Unions stemming from the ECB experience.
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Paper provided by Università Cattolica del Sacro Cuore, Dipartimenti e Istituti di Scienze Economiche (DISCE) in its series DISCE - Quaderni dell'Istituto di Economia e Finanza with number
ief0070.
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Length: nn pages 23
Date of creation: Mar 2007Date of revision:
Handle: RePEc:ctc:serie3:ief0070Contact details of provider: Email: Web page: http://www.unicatt.it/Istituti/EconomiaFinanza More information through EDIRC
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Keywords: EMU Monetary Policy Reaction Function Taylor rule ECB Bundesbank Find related papers by JEL classification: E52 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Monetary Policy E58 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Central Banks and Their Policies
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Stefano Colombo, 2008.
"Discriminatory prices, endogenous locations and the Prisoner Dilemma problem ,"
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Luca Colombo & Herbert Dawid & Kordian Kabus, 2007.
"When do Thick Venture Capital Markets Foster Innovation? An Evolutionary Analysis ,"
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ief0074, Università Cattolica del Sacro Cuore, Dipartimenti e Istituti di Scienze Economiche (DISCE).
[Downloadable!]
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