The Taylor Rule and Interest Rates in the Emu Area: A Note

20 Pages Posted: 13 Dec 2005

See all articles by Stefan Gerlach

Stefan Gerlach

Central Bank of Ireland; Centre for Economic Policy Research (CEPR)

Gert Schnabel

Bank for International Settlements (BIS)

Date Written: August 1999

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, moved very closely with average output gaps and inflation as suggested by the Taylor rule.

Suggested Citation

Gerlach, Stefan and Schnabel, Gert, The Taylor Rule and Interest Rates in the Emu Area: A Note (August 1999). BIS Working Paper No. 73, Available at SSRN: https://ssrn.com/abstract=856944 or http://dx.doi.org/10.2139/ssrn.856944

Stefan Gerlach (Contact Author)

Central Bank of Ireland ( email )

P.O. Box 559
Dame Street
Dublin, 2
Ireland

Centre for Economic Policy Research (CEPR) ( email )

London
United Kingdom

Gert Schnabel

Bank for International Settlements (BIS) ( email )

CH-4002 Basel, Basel-Stadt
Switzerland

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