Carstensen, Kai; COLAVECCHIO, Roberta - In: Rivista Italiana degli Economisti 11 (2006) 1, pp. 51-86
In this paper we review and estimate Taylor-type reaction functions of the ECB for the first five years of EMU. We find … economically plausible specifications indicating that the ECB has attached a large and stabilizing weight to inflation but no … significant weight to money growth. This result supports the view that the ECB strives to maintain low inflation, but contradicts …