Analysis on German Monetary Policy from 1974 to 1990

This article analyzes German monetary policy from 1974 to 1990. During this period, Germany experienced rapid economic growth and maintained the inflation rate at an average low level. This article would like to analyze German monetary policy to find the reasons why Germany could have rapid economic growth and maintain inflation rate at an average low level. Then specific main goal, right choices of monetary policy tools and intermediary indicators, and timely adjustment of the policy were found as the reasons. We also learn some successful experience about monetary policy from Germany and apply them in China.

Money, Inflation and Growth in Germany. A Vector-Error-Correction-P-Star Model / Der Zusammenhang zwischen Geldmenge, Output und Preisen in Deutschland. Ein Vektorfehlerkorrektur-P-Star-Ansatz

SummaryThe present paper uses the P-Star approach to analyze the real and price effects of German monetary policy on the basis of a multivariate vector-error-correction-model. One surprising result is that the Bundesbank does not cause the price effects of its monetary policy actions directly via (rational) expectations but only indirectly via influencing the output gap. The real effects of monetary policy are only of a temporary nature. In the long run money is neutral.

Ein alternativer Indikator der deutschen Geldpolitik. Untersuchung im Rahmen eines strukturellen VAR-Modells / An Improved Indicator of German Monetary Policy A Structural VAR Analysis

SummaryThe day-to-day interbank rate usually is taken as an indicator of Bundesbank policy. But this neither fits in the institutional settings in Germany nor the identification problem is solved, because this interest rate reflects supply-side as well as demand-side shocks. The purpose of the