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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...
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The Eurozone crisis represents one of the greatest economic tragedies of the past century. It has caused immense human … examination, points to Eurozone countries' common monetary policy as the real culprit behind the area's sharp decline in economic … findings point to the need for a new monetary policy regime in the Eurozone. The case is made for the new regime to be a …
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I have assessed changes in the monetary policy stance in the euro area since its inception by applying a Bayesian time-varying parameter framework in conjunction with the Hamiltonian Monte Carlo algorithm. I find that the estimated policy response has varied considerably over time. Most of the...
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In this paper, we estimate a New Keynesian DSGE model developed by Ireland (2003) on French, German and Spanish data with the aim to explore the macroeconomic consequences of EMU. In order to validate the results from the DSGE model, we amend this analysis by stability tests of monetary policy...
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