The original Taylor rule establishes a simple linear relation between the interest rate,
inflation and the output gap. An important extension to this rule is the assumption of a …

Intra-Eurozone current-account imbalances (and divergent external debt positions) cannot
be attributed to the deterioration of cost (or price) competitiveness in Europe's periphery vis …

This paper estimates forward-looking Taylor rules for the euro area. Using the asymmetries
in inflation and cyclical output developments across countries, we investigate the adequacy …

The Taylor rule establishes a simple linear relation between the interest rate, inflation and
output gap. However, this relation may not be so simple. To get a deeper understanding of …

This paper analyzes the monetary policy of the European Central Bank (ECB) both before
and after the outbreak of the global financial crisis in 2008. In the literature, researchers …

This paper analyses the European central bank (ECB) monetary policy over the period 1999–
2006, with a special emphasis on the recent years. The first part of the paper underlines the …

Compared to inflation differentials among regions in the United States, European Monetary
Union (EMU) inflation differentials are larger and more persistent. Based on augmented …

The recent financial crisis has shown that the economic consequences of financial instability
can be devastating. The consensus on the role that asset prices should play in monetary …

We use the ECB's Survey of Professional Forecaster to show that euro area expectations are
consistent with standard macroeconomic building blocks such as the Phillips curve, Okun's …

Studying monetary authority response to macroeconomic imbalances using the interest rate
as a proxy variable for monetary policy became ineffective after the financial crisis, when …