Monetary policy in the Euro area: Lessons from 5 years of ECB and implications for Turkey
AbstractWe examine monetary policy in the Euro area from both theoretical and empirical perspectives. We discuss what theory tells us the strategy of Central banks should be and contrasts it with the one employed by the ECB. We review accomplishments (and failures) of monetary policy in the Euro area and suggest changes that would increase the correlation between words and actions; streamline the understanding that markets have of the policy process; and anchor expectation formation more strongly. We examine the transmission of monetary policy shocks in the Euro area and in some potential member countries and try to infer the likely effects occurring when Turkey joins the EU first and the Euro area later. Much of the analysis here warns against having too high expectations of the economic gains that membership to the EU and Euro club will produce.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by Department of Economics and Business, Universitat Pompeu Fabra in its series Economics Working Papers with number 922.
Date of creation: Mar 2005
Date of revision:
Contact details of provider:
Web page: http://www.econ.upf.edu/
Pillars; Communication; Transmission; EU newcomers;
Find related papers by JEL classification:
- C11 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Bayesian Analysis: General
- E12 - Macroeconomics and Monetary Economics - - General Aggregative Models - - - Keynes; Keynesian; Post-Keynesian
- E32 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Business Fluctuations; Cycles
- E62 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Fiscal Policy
This paper has been announced in the following NEP Reports:
- NEP-ALL-2006-01-29 (All new papers)
- NEP-CBA-2006-01-29 (Central Banking)
- NEP-FMK-2006-01-29 (Financial Markets)
- NEP-MAC-2006-01-29 (Macroeconomics)
- NEP-MON-2006-01-29 (Monetary Economics)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Mojon, Benoît & Kashyap, Anil K. & Angeloni, Ignazio & Terlizzese, Daniele, 2002. "Monetary Transmission in the Euro Area : Where Do We Stand?," Working Paper Series 0114, European Central Bank.
- Charles Goodhart & Evi Pappa, 2003.
"The transition from national currencies to the Euro,"
LSE Research Online Documents on Economics
511, London School of Economics and Political Science, LSE Library.
- Goodhart, Charles & Pappa, Evi, 2003. "The transition from national currencies to the euro," Economics Letters, Elsevier, vol. 79(1), pages 83-88, April.
- Georgy Ganev & Krisztina Molnar & Krzysztof Rybinski & Przemyslaw Wozniak, 2002. "Transmission Mechanism of Monetary Policy in Centraland Eastern Europe," CASE Network Reports 0052, CASE-Center for Social and Economic Research.
- Bj�rn-Roger Wilhelmsen & Andrea Zaghini, 2011.
"Monetary policy predictability in the euro area: an international comparison,"
Taylor & Francis Journals, vol. 43(20), pages 2533-2544.
- Bjørn-Roger Wilhelmsen & Andrea Zaghini, 2005. "Monetary policy predictability in the euro area: An international comparison," Working Paper 2005/7, Norges Bank.
- Wilhelmsen, Bjørn-Roger & Zaghini, Andrea, 2005. "Monetary policy predictability in the euro area: an international comparison," Working Paper Series 0504, European Central Bank.
- Orphanides, Athanasios, 2004.
"Monetary Policy Rules, Macroeconomic Stability, and Inflation: A View from the Trenches,"
Journal of Money, Credit and Banking,
Blackwell Publishing, vol. 36(2), pages 151-75, April.
- Athanasios Orphanides, 2001. "Monetary policy rules, macroeconomic stability and inflation: a view from the trenches," Finance and Economics Discussion Series 2001-62, Board of Governors of the Federal Reserve System (U.S.).
- Orphanides, Athanasios, 2001. "Monetary policy rules, macroeconomic stability and inflation: a view from the trenches," Working Paper Series 0115, European Central Bank.
- Jarociński, Marek, 2008.
"Responses to monetary policy shocks in the east and the west of Europe: a comparison,"
Working Paper Series
0970, European Central Bank.
- Marek Jarocinski, 2010. "Responses to monetary policy shocks in the east and the west of Europe: a comparison," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 25(5), pages 833-868.
- Marek Jarocinski, 2006. "Responses to Monetary Policy Shocks in the East and the West of Europe: A Comparison," Working Papers 124, Oesterreichische Nationalbank (Austrian Central Bank).
- Marek Jarocinski, 2004. "Responses to Monetary Policy Shocks in the East and the West of Europe: A Comparison," CASE Network Studies and Analyses 0287, CASE-Center for Social and Economic Research.
- Gulbin Sahinbeyoglu, 2001. "Monetary Transmission Mechanism : A View From A High Inflationary Environment," Discussion Papers 0101, Research and Monetary Policy Department, Central Bank of the Republic of Turkey.
- Murray Sherwin, 1999. "Inflation targeting: 10 years on," Reserve Bank of New Zealand Bulletin, Reserve Bank of New Zealand, vol. 62, September.
- Otmar Issing, 2001. "The EURO Area and the single monetary policy," Working Papers 44, Oesterreichische Nationalbank (Austrian Central Bank).
- David-Jan Jansen & Jakob de Haan, 2004.
"Look Who’s Talking: ECB Communication during the First Years of EMU,"
CESifo Working Paper Series
1263, CESifo Group Munich.
- David-Jan Jansen & Jakob de Haan, 2006. "Look who's talking: ECB communication during the first years of EMU," International Journal of Finance & Economics, John Wiley & Sons, Ltd., vol. 11(3), pages 219-228.
- David-Jan Jansen & Jakob de Haan, 2004. "Look Who's Talking: ECB communication during the first years of EMU," DNB Working Papers 007, Netherlands Central Bank, Research Department.
- William Poole, 1999. "Communicating the stance of monetary policy," Speech 73, Federal Reserve Bank of St. Louis.
- Frederic S Mishkin, 2004.
"Can Central Bank Transparency Go Too Far?,"
RBA Annual Conference Volume,
in: Christopher Kent & Simon Guttmann (ed.), The Future of Inflation Targeting
Reserve Bank of Australia.
- Issing, Otmar, 2001. "The Euro Area and the Single Monetary Policy," International Journal of Finance & Economics, John Wiley & Sons, Ltd., vol. 6(4), pages 277-88, October.
- Fabio Canova & Matteo Ciccarelli, 2002.
"Panel Index Var Models: Specification, Estimation, Testing And Leading Indicators,"
Working Papers. Serie AD
2002-21, Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie).
- Canova, Fabio & Ciccarelli, Matteo, 2003. "Panel Index VAR Models: Specification, Estimation, Testing and Leading Indicators," CEPR Discussion Papers 4033, C.E.P.R. Discussion Papers.
- Bartosz Mackowiak, 2005.
"What does the Bank of Japan do to East Asia?,"
SFB 649 Discussion Papers
SFB649DP2005-059, Sonderforschungsbereich 649, Humboldt University, Berlin, Germany.
- Luca Benati, 2004.
"Evolving post-World War II UK economic performance,"
Bank of England working papers
232, Bank of England.
- Luca Benati, 2003. "Evolving Post-World War II U.K. Economic Performance," Computing in Economics and Finance 2003 171, Society for Computational Economics.
- William Poole, 2001. "Central bank transparency: why and how?," Speech 51, Federal Reserve Bank of St. Louis.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ().
If references are entirely missing, you can add them using this form.