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Monetary Policy Rules In Accession Countries to EU: Is the Taylor rule a pattern?

Author

Listed:
  • Ramon Maria-Dolores

    (Universidad de Murcia)

Abstract

I contemplate the Taylor rule as a benchmark for setting monetary policy in some Accession Countries to the EU in the 1998-2003 period. I find that countries with a floating exchange rate regime (the Czech Republic, Poland and Hungary) moved short-term interest rates as suggested by the Taylor rule and in a similar way the ECB is doing. On the other hand, the Taylor rule predicts worse interest rate behaviour in the Slovak Republic where inflation targeting is not adopted yet.

Suggested Citation

  • Ramon Maria-Dolores, 2005. "Monetary Policy Rules In Accession Countries to EU: Is the Taylor rule a pattern?," Economics Bulletin, AccessEcon, vol. 5(7), pages 1-16.
    • Handle: RePEc:ebl:ecbull:eb-04e50013
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. Caraiani, Petre, 2011. "Comparing Monetary Policy Rules in the Romanian Economy: A New Keynesian Approach," Journal for Economic Forecasting, Institute for Economic Forecasting, vol. 0(4), pages 30-46, December.
    2. Caraiani, Petre, 2013. "Comparing monetary policy rules in CEE economies: A Bayesian approach," Economic Modelling, Elsevier, vol. 32(C), pages 233-246.
    3. Regős, Gábor, 2013. "Kockázattal kiegészített Taylor-szabályok becslése Magyarországra [Estimation of risk-augmented Taylor rules for Hungary]," Közgazdasági Szemle (Economic Review - monthly of the Hungarian Academy of Sciences), Közgazdasági Szemle Alapítvány (Economic Review Foundation), vol. 0(6), pages 670-702.
    4. Josef Arlt & Martin Mandel, 2014. "The Reaction Function of Three Central Banks of Visegrad Group," Prague Economic Papers, Prague University of Economics and Business, vol. 2014(3), pages 269-289.
    5. Vašíček, Bořek, 2012. "Is monetary policy in the new EU member states asymmetric?," Economic Systems, Elsevier, vol. 36(2), pages 235-263.
    6. Josef Arlt & Martin Mandel, 2012. "Je možné předpovídat repo sazbu ČNB na základě zpět hledícího měnového pravidla? [Is it Possible to Predict the CNB Repo Rate on the Basis of the Backward-Looking Monetary Rule?]," Politická ekonomie, Prague University of Economics and Business, vol. 2012(4), pages 484-504.
    7. Frömmel, Michael & Garabedian, Garo & Schobert, Franziska, 2011. "Monetary policy rules in Central and Eastern European Countries: Does the exchange rate matter?," Journal of Macroeconomics, Elsevier, vol. 33(4), pages 807-818.
    8. Borek Vasicek, 2010. "Monetary Policy Rules and Inflation Processes in Open Emerging Economies," Eastern European Economics, Taylor & Francis Journals, vol. 48(4), pages 36-58, January.
    9. Schepp, Zoltán & Abaligeti, Gallusz & Németh, Kristóf, 2018. "Időben változó Taylor-szabály a hazai monetáris politika jellemzésére [A time-varying parameter Taylor rule for Hungarian monetary policy]," Közgazdasági Szemle (Economic Review - monthly of the Hungarian Academy of Sciences), Közgazdasági Szemle Alapítvány (Economic Review Foundation), vol. 0(1), pages 24-43.
    10. repec:ebl:ecbull:v:5:y:2007:i:3:p:1-11 is not listed on IDEAS
    11. Jens Klose, 2019. "Are Eastern European Taylor Reaction Functions Asymmetric in Inflation or Output? Empirical Evidence for Four Countries," Eastern European Economics, Taylor & Francis Journals, vol. 57(1), pages 31-49, January.
    12. Ali Mna & Hadda Kilani, 2023. "A monetary policy reaction function through Taylor rule vision: evidence from Tunisia," SN Business & Economics, Springer, vol. 3(8), pages 1-18, August.
    13. Taro Ikeda, 2010. "Asymmetric Preferences for Monetary Policy Rules in the Visegrad Four and the Financial Crisis," Economics Bulletin, AccessEcon, vol. 30(3), pages 2160-2188.

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    More about this item

    Keywords

    inflation targeting;

    JEL classification:

    • E5 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit
    • C2 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables

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