Favero, Carlo A.; Giavazzi, Francesco - C.E.P.R. Discussion Papers - 2008
(ECB) to study optimal monetary policy in the Euro area (for instance Smets and Wouters, 2004a, 2004b) typically assume … of European long-term rates has been affected by EMU and whether the response of long-term rates to monetary policy has … remained true for the ECB, at least so far. Using closed economy models to analyze monetary policy in the Euro is thus …