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The ECB's Money Pillar: An Assessment Author info | Abstract | Publisher info | Download info | Related research | Statistics Albert Jaeger
This paper discusses the case for a money pillar in the European Central Bank's (ECB) monetary policy strategy. Time-series evidence for industrial countries based on frequency-domain and unobserved-components analysis suggests that money can play a useful role in gauging and constraining long-run risks to price stability. Moreover, the specter of asset price bubbles and some of the area's institutional features, which may impart considerable persistence to area-wide inflation, caution against shifting to conventional inflation targeting. But the time series evidence also seems to point to a relatively loose connection between variations in nominal money growth and inflation in the short to medium run. As a consequence, effective communication of the ECB's monetary policy decisions from the point of view of the present money pillar is likely to remain a challenging task.
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Paper provided by International Monetary Fund in its series IMF Working Papers with number
03/82.
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Length: 31 pages
Date of creation: 06 May 2003Date of revision:
Handle: RePEc:imf:imfwpa:03/82Contact details of provider: Postal: International Monetary Fund, Washington, DC USA Phone: (202) 623-7000 Fax: (202) 623-4661 Email: Web page: http://www.imf.org/external/pubind.htm More information through EDIRC
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For technical questions regarding this item, or to correct its listing, contact: (Christopher F. Baum).
Keywords: European Central Bank ; Monetary policy ; Inflation ; Price stabilization ; Other versions of this item:
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