ARE CENTRAL BANK MONETARY POLICY REACTIONS ASYMMETRIC? THE CASE OF THE ECB
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Abstract
A large number of central banks make decisions according to specific targets, mainly in the areas of inflation and economic growth. The question we ask ourselves is whether their reactions are as intense when deviations from those targets are positive, compared to when they are negative, or, to the contrary, the reactions are asymmetric. To respond, based on Taylor’s hypotheses about the monetary policy reaction function, we analyze the possible causes of asymmetric behavior and establish a methodology to determine whether central bank decisions have been asymmetric or not. Empirically, we analyze the case of the European Central Bank (ECB), concluding that in its case, it is not possible to affirm that it reacted asymmetrically from 1999 to 2008.
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How to Cite
Garcia-Iglesias, J. M., Pateiro-Rodríguez, C., & Salcines Cristal, J. V. (2015). ARE CENTRAL BANK MONETARY POLICY REACTIONS ASYMMETRIC? THE CASE OF THE ECB. Investigación Económica, 72(284). Retrieved from https://revistas.unam.mx/index.php/rie/article/view/50474
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