Description
Book SynopsisThis work provides different studies of how econometric evaluation of monetary policy based on forward-looking Taylor rules is conducted. The first part discusses theoretical results regarding the Taylor principle and can be used as a guideline for the evaluation of the following three empirical applications based on survey data of Consensus Economics. The first application deals with the question whether the introduction of inflation targeting affects monetary policy. The second application investigates the consequences of oil price movements for monetary policy. The third application analyzes monetary policy conditions in Spain before and after the changeover to the Euro by estimating forward-looking Taylor rules.
Table of ContentsContents: Stability conditions for forward-looking monetary policy rules in the basic New-Keynesian model – Inflation targeting makes the difference: Novel evidence on inflation stabilization – Monetary policy and oil price expectations – The Euro and the Spanish housing bubble.
