The Preferences of the Euro Area Monetary Policy-maker
Bibliographic Data
| ID | 10070596 |
|---|---|
| Authors | Álvaro Aguiar (0000-0001-6708-7014, Universidade do Porto), Manuel M F Martins (0000-0002-1400-7233, Universidade do Porto, corresponding author) |
| Year | 2005 |
| Volume | 43 |
| Issue | 2 |
| Pages | 221-250 |
| Publication date | 2005-05-18 |
| 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.0021-9886.2005.00553.x |
| OpenAlex | W3123682809 |
| Language | EN |
| Citations received | 2 |
| References cited | 36 |
The aim of this article is to uncover the aggregate monetary policy preferences in the euro area. This is pursued under the assumption of optimizing policy behaviour subject to a simple model of the macroeconomic structure, following a procedure proposed recently in the literature in which GMM estimation stems from the optimal control solution to the optimization problem. Instead of waiting for more quarterly data of ECB policy-making, the sample goes as far back as possible into the pre-EMU years. Through a combined analysis of facts, data and literature on European integration, 1995 is identified as the start date of a euro area notional policy regime, sustained later by the ECB. The policy preferences are estimated as a loss function with strict inflation targeting at 1.6 per cent and interest-rate smoothing, in the period 1995–2002
Econometrics · Economics · Estimation · Inflation (cosmology · Inflation targeting · Interest rate · Macroeconomics · Monetary economics · Monetary policy · Notional amount · Sample (material · Smoothing · Computer Science · European Monetary and Fiscal Policies · Finance · Global Financial Crisis and Policies · Monetary Policy and Economic Impact
Forecasting, Structural Time Series Models and the Kalman Filter
Tests for Parameter Instability and Structural Change With Unknown Change Point
Monetary policy rules in practice
Monetary Policy Rules Based on Real-Time Data
Revealed Preference of the Federal Reserve
Finite-Sample Properties of Some Alternative GMM Estimators
Assessing GMM Estimates of the Federal Reserve Reaction Function
The New Econometrics of Structural Change
| Citations per year | 0.11 |
|---|---|
| Citation span | 2008 - 2013 (6) |
| Highly cited | No |