What does "below, but close to, two per cent" mean? Assessing the ECB's reaction function with real time data

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dc.contributor.author Haavio, Markus
dc.contributor.author Jalasjoki, Pirkka
dc.contributor.author Kilponen, Juha
dc.contributor.author Paloviita, Maritta
dc.date.accessioned 2021-06-02T23:41:46Z
dc.date.available 2021-06-02T23:41:46Z
dc.date.issued 2021
dc.identifier.uri http://urn.fi/URN:NBN:fi:bof-201710051625
dc.identifier.uri https://helda.helsinki.fi/bof/handle/123456789/17989
dc.description.abstract Using unique real-time quarterly macroeconomic projections of the Eurosystem/ECB staff, we estimate competing specifications of the ECB's monetary policy reaction function. We consider specifications which include inflation and output growth projections, a past inflation gap, a time-varying natural real interest rate, and different inflation targets. Our first key finding is that the de facto inflation target of the ECB lies between 1.6 percent and 1.8 percent. Our second key finding is that the ECB reacts both to short-term macroeconomic projections and to past deviations of inflation from its de facto target.
dc.format.extent 125-170
dc.language.iso ENG
dc.subject inflaatio
dc.subject tavoitteet
dc.subject rahapolitiikka
dc.subject euroalue
dc.subject hinnat
dc.subject EKP
dc.subject reaktiofunktiot
dc.subject hintavakaus
dc.subject säännöt
dc.subject Taylorin sääntö
dc.subject uskottavuus
dc.subject eurojärjestelmä
dc.subject.other credibility
dc.subject.other inflation target
dc.subject.other monetary policy
dc.subject.other realtime projections
dc.subject.other Taylor rule
dc.title What does "below, but close to, two per cent" mean? Assessing the ECB's reaction function with real time data
dc.type Journal Article
dc.identifier.urn URN:NBN:fi:bof-202002181171
dc.subject.jel E31
dc.subject.jel E52
dc.subject.jel E58
dc.series.name International Journal of Central Banking
dc.series.volume 17
dc.series.number 2 (June)
dc.date.publication 1.6.2021
dc.description.publication Published also in BoF DP 29/2017
dc.relation.url https://www.ijcb.org/journal/ijcb21q2a4.htm
dc.type.okm A1

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