Monetary Conditions in Europe: a methodological analysis
Recent studies criticise the construction of a Monetary Conditions Index (MCI), a composite index of interest and exchange rates frequently published by (central) banks, IMF and OECD. Instead of estimating the weights of this index by means of simple IS-curves, this paper investigates interest and exchange rates effects on real GDP on the basis of large macroeconometric models for some European countries and the European Economic and Monetary Union. Under a monetary union the impact of the exchange rate on GDP relative to that of the short-term interest rate is substantially lower than without this union. Furthermore the inclusion of a long-term interest rate in the MCI is investigated. From the analyses emerges that for most countries this affects only the level of the MCI but not the turning points.
To our knowledge, this item is not available for
download. To find whether it is available, there are three
1. Check below under "Related research" whether another version of this item is available online.
2. Check on the provider's web page whether it is in fact available.
3. Perform a search for a similarly titled item that would be available.
|Date of creation:||1998|
|Date of revision:|
|Contact details of provider:|| Postal: |
Web page: http://www.dnb.nl/en/
More information through EDIRC
When requesting a correction, please mention this item's handle: RePEc:dnb:wormem:547. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Rob Vet)
If references are entirely missing, you can add them using this form.