Discussion paper

DP8160 What Drives the European Central Bank's Interest-Rate Changes?

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.

£6.00
Citation

Jensen, H and (2010), ‘DP8160 What Drives the European Central Bank's Interest-Rate Changes?‘, CEPR Discussion Paper No. 8160. CEPR Press, Paris & London. https://cepr.org/publications/dp8160