In this paper I add to the evidence on possible nonlinearities in the conduct of ECB monetary policy. For this purpose a nonlinear Taylor rule (threshold regression) was estimated and compared to a linear benchmark model. The estimation was carried out with output gap data computed from...

The traditional economic theory suggests that changes in the money supply or in the interest rates can influence the business cycle, but not the long-run potential output. In other words, monetary policy is neutral over the long-run. In this paper we use some new developments in econometrics to...

In this paper, our main objective is to verify the ability of inflation targeting to achieve better results concerning inflation, production and interest rate, with a new sample related to some emerging countries. Therefore, we have studied the opportunities stemming from the adoption of...