The paper studies the in.ation rate associated with optimal monetary and fiscal policy in a number of standard dynamic … price in.ation;(2) Optimal monetary policy implements Bailey-Friedman optimal quantity of money rule.No welfare …-economics based argument for price stability as an objective (let alone the overriding objective) of monetary policy can be …

This paper addresses the effects of the European Economic and Monetary Union (EMU) since the introduction of the euro … start taking stock of these effects. For this purpose, in June 2005, the ECB held a workshop on What effects is EMU having … effects of EMU and brings together several of the issues raised by the leading presentations: i.e., this paper serves as an …

-whereas following the disinflation of the early 1980s the gain dropped below one for all the countries and all the monetary aggregates I … the coherence, thus implying that monetary regimes characterised by low and stable inflation exhibit a low gain, but a …Over the last two centuries, the cross-spectral coherence between either narrow or broad money growth and inflation at …

The paper shows that US monetary policy has been an important determinant of global equity markets. Analysing 50 equity … policy, ranging from a zero response in some to a reaction of 10% or more in other countries, as well as significant cross … the degree of global integration of countries and not a country’s bilateral integration with the United States is a key …

This study assesses the impact of the single market program (SMP) and the European monetary union (EMU) on the German … banking sector. As a main result, the introduction of the EMU can be assessed as more important for the German banking system … than the SMP because of the relative liberal conditions prior to the SMP. To maintain or enhance profitability in an …

This paper compares two contrasting approaches to robust monetary policy design. The first developed by Hansen and … Sargent (2003, 2007) assumes unstructured model uncertainty and uses a minimax robustness criterion to design monetary rules … examine the consequences for robust rules of the zero lower bound (ZLB) constraint on the nominal interest rate, the monetary …

what extent the feared risks have not (or have not yet) materialised. It is shown that some of the alarming risks of the … as well as modern debate on the optimum currency area the outcomes of the first ten years of the European Monetary Union … European Monetary Union that had been predicted in the 1990ies have emerged in the meantime – even though they have not yet …

(under the single monetary policy) to excess demand and inflation. If so, growing awareness of these structurally unsound … also assumes that the ECB (Euroland’s monetary authority) targets a combination of consumer price inflation and a given … paper discusses prospects for the external payments balances of EU states, now that European Monetary Union (EMU) is under …

behaviour of the ECB we focus on combining a standard monetary policy rule, where the central bank targets some monetary or …. The Policy Environment Monetary policy In order to investigate the performance of the UK economy both in and out of EMU we … need to give explicit form to the policy rules being followed by both the Bank of England and the ECB. When analysing the …

reaches either the upper or the lower limit of the deviation band, both the European Central Bank (ECB) and the central bank … 34 The ECB monetary policy stance was also unchanged during Sample 1 and eased during Sample 2. The monetary policy … easing of the ECB during Sample 2 occurred at a slower pace compared to the Danish monetary policy easing. 35 These …