Monetary Policy Reaction Functions, Consistent Expectations, and The Burns Era

1980 ◽  
Vol 12 (1) ◽  
pp. 30 ◽  
Author(s):  
Richard K. Abrams ◽  
Richard Froyen ◽  
Roger N. Waud
Keyword(s):  
Monetary Policy ◽  
Reaction Functions ◽  
Monetary Policy Reaction Functions

A NOTE ON TIME VARIATION IN A FORWARD-LOOKING MONETARY POLICY RULE: EVIDENCE FROM EUROPEAN COUNTRIES

2012 ◽  
Vol 16 (S3) ◽  
pp. 422-437 ◽  
Author(s):  
N. Kundan Kishor
Keyword(s):  
Monetary Policy ◽  
Time Variation ◽  
Monetary Economics ◽  
Time Varying ◽  
Reaction Functions ◽  
The United Kingdom ◽  
Expected Inflation ◽  
Time Varying Parameter ◽  
Monetary Policy Reaction Functions ◽  
Forward Looking

This paper estimates time-varying forward-looking monetary policy reaction functions for the central banks of France, Germany, Italy, and the United Kingdom. We utilize the framework developed by Kim [Economics Letters91 (2006) 21–26] and Kim and Nelson [Journal of Monetary Economics(2006) 1949–1966] to deal with the issue of endogeneity in a time varying–parameter model. Our results find substantial time variation in the conduct of monetary policy in these four countries, which cannot be adequately captured by the conventional fixed-coefficient approach. Our findings suggest that there was a significant decline in the Bank of France's and the Bank of Italy's response to the German interest rate in 1992, and it coincided with the breakdown of the exchange rate management system in Europe. Our results suggest that the Bank of England was slower than the Bundesbank to increase its response to expected inflation, as its response to inflation became more than one-for-one only in the early 1980s.

scholarly journals Monetary Policy Reaction Functions of the TICKs: A Quantile Regression Approach

2018 ◽  
Vol 54 (15) ◽  
pp. 3552-3565
Author(s):  
Christina Christou ◽  
Ruthira Naraidoo ◽  
Rangan Gupta ◽  
Won Joong Kim
Keyword(s):  
Monetary Policy ◽  
Quantile Regression ◽  
Reaction Functions ◽  
Regression Approach ◽  
Monetary Policy Reaction Functions
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