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Financial Systems and the Role of Banks in Monetary Policy Transmission in the Euro Area

Ehrmann, Michael - 2010

This paper offers a comprehensive comparison of the structure of banking and financial markets in the euro area. Based on this, several hypotheses about the role of banks in monetary policy transmission are developed. Many of the predictions that have been proposed for the U.S. are deemed...

Persistent link: https://www.econbiz.de/10013134951

Price Stability and the Ecb's Monetary Policy Strategy

Bordes, Christian - 2010

This paper focuses on the price stability objective within the framework of the single monetary policy strategy. It starts by reviewing what this objective, which is common to all central banks, means. Secondly, this paper will focus exclusively on the anchoring of short- to medium-term...

Persistent link: https://www.econbiz.de/10013135030

The Taylor Rule and Monetary Policy in the Euro Area

Mésonnier, Jean-Stéphane - 2010

We estimate the reaction function of monetary policy in the Euro area and derive the Taylor-type policy rule that a would-be ECB would have followed since the beginning of the European Monetary System (1979-2003). We first follow the standard GMM methodology developed by Clarida, Galí and...

Persistent link: https://www.econbiz.de/10013136222

Technology Shocks and Monetary Policy in an Estimated Sticky Price Model of the Euro Area

Avouyi-Dovi, Sanvi - 2010

In this paper, we seek to characterize the dynamic effects of permanent technology shocks and the way in which European monetary authorities reacted to these shocks over the past two decades. To do so, we develop an augmented sticky price-sticky wage model of the business cycle, which is...

Persistent link: https://www.econbiz.de/10013136225

Optimal Monetary Policy in an Estimated DSGE Model of the Euro Area with Cross-Country Heterogeneity

Jondeau, Eric - 2010

This paper investigates the implications of cross-country heterogeneity within the euro area for the design of optimal monetary policy. We build an optimizing-based multi-country model (MCM) describing the euro area in which differences between structural parameters across countries are allowed....

Persistent link: https://www.econbiz.de/10013136538

Revisiting the Money Demand Function in the Euro Area (in French)

Avouyi-Dovi, Sanvi - 2010

recent years, the dynamics of M3 in the euro area have been driven by two factors: a strong preference for liquidity, observed between 2001 and 2003, followed by a normalisation, at a relatively moderate pace, of portfolio behaviour; as regards the counterparts, changes in M3 and net external...

Persistent link: https://www.econbiz.de/10013136553

The Reliability of Macroeconomic Forecasts Based on Real Interest Rate Gap Estimates in Real Time : An Assessment for the Euro Area

Mésonnier, Jean-Stéphane - 2010

The real interest rate gap or IRG - the gap between the short term real interest rate and its "natural" level - is a theoretical concept that has attracted much attention in central banks in recent years. This paper aims at clarifying its practical relevance for monetary policy in real time. For...

Persistent link: https://www.econbiz.de/10013136671

Euro Money Market Interest Rates Dynamics and Volatility : How They Respond to Recent Changes in the Operational Framework

Jardet, Caroline - 2010

At the beginning of 2004, the Eurosystem implemented several modifications of its operational framework and liquidity …

Persistent link: https://www.econbiz.de/10013136867

Probability of Informed Trading : An Empirical Application to the Euro Overnight Market Rate

Idier, Julien - 2010

between 2000 and 2004 a heterogeneous learning process of market mechanisms within participants could be observed. From 2005 … March 2004 changes in Eurosystem's operational framework have modified the informational patterns of order flow in the euro … the reserves maintenance period than they were before March 2004 …

Persistent link: https://www.econbiz.de/10013137284

Does Uncertainty Make a Time-Varying Natural Rate of Interest Irrelevant for the Conduct of Monetary Policy?

Mésonnier, Jean-Stéphane - 2010

We compute optimized monetary policy rules for the ECB when the euro area economy is described by a small empirical macroeconomic model with a time-varying natural interest rate which is positively correlated with fluctuations in trend output growth. We investigate the consequences of both...

Persistent link: https://www.econbiz.de/10013137285