Title: The European Central Bank: Decision rules and macroeconomic performance
Authors: De Grauwe, Paul
Dewachter, Hans
Aksoy, Y
Issue Date: 1998
Publisher: K.U.Leuven, CES : Departement Economie
Series Title: CES - Discussion Paper Series DPS 98.34 pages:1-37
Abstract: In this paper we analyze the effects of different decision rules in the ECB on monetary stability. We consider a model where asymmetric shocks and divergent propagation of shocks on output and inflation are potential causes of tensions within the ECB concerning the conduct of monetary (interest rate) policy. Given divergence of desired interest rates (due to the asymmetries) we analyze the effect of different voting procedures within the Governing Council of the ECB. Welfare implications are discussed.
Publication status: published
KU Leuven publication type: ER
Appears in Collections:Research Center of International Economics, Leuven

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