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Herding Behaviour of Central Banks: Following the Fed and ECB

Author

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  • Jakub Bureš

    (Mendel University in Brno, Czech Republic)

Abstract

I apply interest rate rules, especially the Taylor rule, to identify basic determinants of the central banks' decision-making process. The results confirmed herding behaviour related to the central bank financial assets and its economic power in the US and Eurozone. The conclusions are discussed in relation to the exchange rate movements and capital flows. The empirical strategy reflects different lag structure and employs autoregressive distributed lag models.

Suggested Citation

  • Jakub Bureš, 2017. "Herding Behaviour of Central Banks: Following the Fed and ECB," European Journal of Business Science and Technology, Mendel University in Brno, Faculty of Business and Economics, vol. 3(1), pages 21-28.
    • Handle: RePEc:men:journl:v:3:y:2017:i:1:p:21-28
    DOI: 10.11118/ejobsat.v3i1.63
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    References listed on IDEAS

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    More about this item

    Keywords

    interest rates; Taylor rule; central banks; currency war;
    All these keywords.

    JEL classification:

    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • E43 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Interest Rates: Determination, Term Structure, and Effects

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