Asymmetries in Transatlantic Monetary Policy-making
Does the ECB Follow the Fed
Bibliographic Data
| ID | 10069399 |
|---|---|
| Authors | Ansgar Belke (0000-0002-9743-4758, University of Hohenheim), Daniel Gros (0000-0002-2911-8235, Centre for European Policy Studies) |
| Year | 2005 |
| Volume | 43 |
| Issue | 5 |
| Pages | 921-946 |
| Publication date | 2005-11-16 |
| Open Access | Yes |
| Type | ARTICLE |
| Venue | JCMS Journal of Common Market Studies (JOURNAL) |
| Journal identifiers | ISSN: 0021-9886 • E-ISSN: 1468-5965 |
| Publisher | Wiley (PUBLISHER • GB) |
| DOI | 10.1111/j.1468-5965.2005.00602.x |
| OpenAlex | W2066566022 |
| Language | EN |
| Citations received | 2 |
| References cited | 7 |
The belief that the European Central Bank (ECB) follows the US Federal Reserve (the Fed) in setting its policy is so entrenched with market participants and commentators that the search for empirical support would seem to be a trivial task. However, this is not the case. We find that the ECB is indeed often influenced by the Fed, but the reverse is true at least as often if one considers longer sample periods. There is empirically little support for the proposition that there has for a long time been a systematic asymmetric leader-follower relationship between the ECB and the Fed. Only after September 2001 is there more evidence of such an asymmetry. There is a clear-cut structural break between the period pre-economic and monetary union (EMU) and EMU itself in terms of the relationship between short-term interest rates on both sides of the Atlantic
Economic and monetary union · Economics · Empirical evidence · European union · Interest rate · International economics · Monetary economics · Monetary policy · Proposition · Sample (material · Economic Theory and Policy · Global Financial Crisis and Policies · Monetary Policy and Economic Impact
| Citations per year | 0.22 |
|---|---|
| Citation span | 2017 - 2019 (3) |
| Highly cited | No |