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Chocs d’Offre et Optimalité de la Politique Monétaire dans la Zone Euro

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Listed:
  • Fève, P.
  • Matheron, J.
  • Sahuc, J-G.

Abstract

This article assesses monetary policy's performances in the Euro zone in the face of supply shocks. We determine the responses of output, inflation, labor share and the nominal interest rate to a supply shock as identified through a structural VAR model. We then develop a DSGE model with nominal rigidities subject to the optimal monetary policy. The model is estimated and tested on the basis of its ability to reproduce the responses drawn from the VAR model. Our results suggest that assuming optimal monetary policy allows for a satisfying fit to the data.

Suggested Citation

  • Fève, P. & Matheron, J. & Sahuc, J-G., 2008. "Chocs d’Offre et Optimalité de la Politique Monétaire dans la Zone Euro," Working papers 200, Banque de France.
    • Handle: RePEc:bfr:banfra:200
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    References listed on IDEAS

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    More about this item

    Keywords

    Supply shocks ; SVAR ; Optimal Monetary Policy.;
    All these keywords.

    JEL classification:

    • E31 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Price Level; Inflation; Deflation
    • E32 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Business Fluctuations; Cycles
    • E52 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Monetary Policy

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