The Taylor Rule and Interest Rates in the EMU Area

Preprint

preprint

Published in RePEc

Abstract

We demonstrate that average interest rates in the EMU countries in 1990-98, with the exception of the period of exchange market turmoil in 1992-93, moved very closely in relation to average output gaps and inflation as suggested by the Taylor rule.

Keywords

MARKET TURMOIL
INTEREST RATES
EMU COUNTRIES
TAYLOR RULE
OUTPUT GAPS
INFLATION
EMU AREA
RATES

All Related Versions

Version 1, RePEc
Version 1, RePEc (Unconfirmed version)

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