DP8160 What Drives the European Central Bank's Interest-Rate Changes?
Author(s): | Morten Aastrup, Henrik Jensen |
Publication Date: | December 2010 |
Keyword(s): | ECB monetary policy, Taylor principle, Taylor rules |
JEL(s): | E43, E58 |
Programme Areas: | International Macroeconomics |
Link to this Page: | cepr.org/active/publications/discussion_papers/dp.php?dpno=8160 |
We show that the ECB's interest rate changes during 1999-2010 have been mainly driven by changes in economic activity in the Euro area. Changes in actual or expected future HICP inflation play a minor, if any, role.