The monetary policy framework of the ECB

  • Peter Bofinger
  • Published 2002


• As the regime shift to a common monetary policy was likely to change the way expectations are formed, there was a risk that empirical relationships between economic variables that have been estimated using data from the past may become unstable. Such changes were expected above all for the financial sector were the impact of Monetary Union was most pronounced. As a consequence, the information content of monetary aggregates was lower than under normal conditions. • In addition, the creation of European Monetary Union had led to an entirely new economic area for which comprehensive and harmonised data had not been collected in the past. A number of fully, or almost fully, harmonised series become available just at the beginning of Monetary Union (monetary data, the balance of payments data and the Harmonised Index of Consumer Prices). As these euro area-wide statistics are based, in part, on new concepts, the properties of the series were well known.

Cite this paper

@inproceedings{Bofinger2002TheMP, title={The monetary policy framework of the ECB}, author={Peter Bofinger}, year={2002} }