The Taylor rule and interest rates in the EMU area

Authors
Gerlach, S Schnabel, G
Citation
S. Gerlach et G. Schnabel, The Taylor rule and interest rates in the EMU area, ECON LETT, 67(2), 2000, pp. 165-171
Citations number
6
Categorie Soggetti
Economics
Journal title
ECONOMICS LETTERS
ISSN journal
01651765 → ACNP
Volume
67
Issue
2
Year of publication
2000
Pages
165 - 171
Database
ISI
SICI code
0165-1765(200005)67:2<165:TTRAIR>2.0.ZU;2-1
Abstract
We demonstrate that average interest rates in the EMU countries in 1990-98, with the exception of the period of exchange market turmoil in 1992-93, mo ved very closely with average output gaps and inflation as suggested by the Taylor rule. (C) 2000 Elsevier Science S.A. All rights reserved. JEL class ification: E5.