Deviations of policy interest rates from the levels implied by the Taylor rule have been persistent before the financial crisis and increased especially after the turn of the century. Compared to the Taylor benchmark, policy rates were often too low. This paper provides evidence that both...

We explain economic growth by both politics, i.e. government activity including spending as well as regulation, and institutional quality and its interaction with politics. This extends previous work on institution building in transition by looking at its impact and, at the same time,...

This paper examines the significance of different fundamental regimes by applying various monetary models of the exchange rate to one of the politically most important exchange rates, the exchange rate of the US dollar vis-à-vis the euro (the DM). We use monthly data from 1975:01 to 2007:12....

This paper tackles the issue of cross-section dependence for the monetary exchange rate model in the presence of unobserved common factors using panel data from 1973 until 2007 for 19 OECD countries. Applying a principal component analysis we distinguish between common factors and idiosyncratic...

This study will put under close scrutiny the monetary transmission process in the eurozone between 2003 and 2011. To this purpose, we investigate the interest rate pass-through from money market rates to various loan rates for up to twelve countries of the European Monetary Union. Applying a...

This study analyzes the exchange rate pass-through into German import prices based on disaggregated data taken on a monthly basis between 1995 and 2012. Our main contribution is twofold: firstly, we employ various time-series techniques to analyze data for different product categories, and also...

This study investigates the role of government activity in economic growth, arguing that economic systems are important and that, therefore, one size of government does not fit all countries. Taking a panel of 111 countries over the years from 1971 to 2010, we consider clusters of economic...

Seit Beginn des Jahres 2018 ist die globale wirtschaftspolitische Unsicherheit deutlich gestiegen. Dazu beigetragen haben nicht zuletzt die zunehmende Sorge vor einer Eskalation der internationalen Handelskonflikte und die ungeklärte Situation über den Austritt des Vereinigten Königreichs aus...

Die Konjunktur in Deutschland hat sich seit Beginn des Jahres 2018 spürbar eingetrübt. Gleichzeitig ist die globale wirtschaftspolitische Unsicherheit aufgrund verschiedener Ereignisse, wie den zunehmenden internationalen Handelskonflikten, deutlich gestiegen. Globale Unsicherheit kann die...

This paper contributes to the literature by assessing expectation effects from monetary policy for the G7 economies. We consider a sample period running from 1995M1 to 2016M6 based on a panel VAR framework, which accounts for international spillovers and time-variation. Relying on a broad set of...