A new version of this entry is available:

Thumbnail Image
ResearchPaper
2006

How the ECB and the US fed set interest rates

Polleit, Thorsten Belke, Ansgar
  269.pdf  (320.83 KB)

Abstract (English)

Monetary policies of the ECB and US Fed can be characterised by ?Taylor rules?, that is both central banks seem to be setting rates by taking into account the ?output gap? and inflation. We also set up and tested Taylor rules which incorporate money growth and the euro-dollar exchange rate, thereby improving the ?fit? between actual and Taylor rule based rates. In general, Taylor rules appear to be a much better way of describing Fed policy than ECB policy. Simulations suggest that the ECB?s short-term interest rates have been at a much lower level in the last two years compared with what a Taylor rule would suggest.

File is subject to an embargo until

This is a new version of:

Notes

Publication license


Copyright

Publication series

Hohenheimer Diskussionsbeiträge; 269

Published in

Faculty
Faculty of Business, Economics and Social Sciences
Institute
Institut für Volkswirtschaftslehre (bis 2010)

Examination date

Supervisor

Edition / version

Citation

Identification

https://hohpublica.uni-hohenheim.de/handle/123456789/5100

DOI

ISSN

ISBN

Language
English

Publisher

Publisher place

Classification (DDC)
330 Economics

Collections

Institut für Volkswirtschaftslehre (bis 2010)

Original object

Free keywords

European Central Bank Federal reserve Monetary policy Taylor rule

Standardized keywords (GND)

Europäische Zentralbank USA / Board of Governors of the Federal Reserve System Geldpolitik Taylor-Regel
Full item page