Responses to monetary policy shocks in the east and the west of Europe: a comparison
Year: 2009
Type: article
Abstract: This paper compares impulse responses to monetary policy shocks in the euro area countries before the EMU and in the New Member States (NMS) from central–eastern Europe. We mitigate the small‐sample problem, which is especially acute for the NMS, by using a Bayesian estimation that combines information across countries. The impulse responses in the NMS are broadly similar to those in the euro area countries. There is some evidence that in the NMS, which have had higher and more volatile inflation, the Phillips curve is steeper than in the euro area countries. This finding is consistent with economic theory. Copyright © 2009 John Wiley & Sons, Ltd.
Source: Journal of Applied Econometrics
DOI: 10.1002/jae.1082
Author: Marek Jarociński
Institution: European Central Bank
Language: English
Domain: Social Sciences
Open Access status: green
Funder: Oesterreichische Nationalbank
OpenAlex ID: W2744075249