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The British Opt-Out From The European Monetary Union: Empirical Evidence From Monetary Policy Rules

Author

Listed:
  • Stefano D'Addona

    (University of Roma Tre)

  • Ilaria Musumeci

    (University of Roma Tre)

Abstract

We analyze the current state of the monetary integration in Europe focusing on the UK position regarding the European Monetary Union. The interest rates decisions of the European Central Bank and the Bank of England are compared through different specifications of the Taylor Rule. The comparison of the monetary conducts provides a useful feedback when looking for the differences claimed by the British government as motivating the UK refusal to join the European Monetary Union. Testing for a forward looking behavior and possible asymmetries in the policy responses, we show evidence supporting the opt-out by the UK monetary authorities.

Suggested Citation

  • Stefano D'Addona & Ilaria Musumeci, 2011. "The British Opt-Out From The European Monetary Union: Empirical Evidence From Monetary Policy Rules," Working Papers 0611, CREI Università degli Studi Roma Tre, revised 2011.
  • Handle: RePEc:rcr:wpaper:06_11
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    References listed on IDEAS

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    Cited by:

    1. Ansgar Belke & Irina Dubova & Thomas Osowski, 2016. "Policy uncertainty and international financial markets: the case of Brexit," ROME Working Papers 201607, ROME Network.

    More about this item

    Keywords

    Taylor rule; European monetary integration; Regime switching models; Interest rate smoothing.;

    JEL classification:

    • E32 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Business Fluctuations; Cycles
    • E52 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Monetary Policy

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