National natural rates of interest and the single monetary policy in the euro area : National natural rates of interest and the single monetary policy in the euro area

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Serval ID
serval:BIB_39D84E009DBC
Type
Article: article from journal or magazin.
Collection
Publications
Institution
Title
National natural rates of interest and the single monetary policy in the euro area : National natural rates of interest and the single monetary policy in the euro area
Journal
Journal of Applied Econometrics
Author(s)
Fries S., Mésonnier J.-S., Mouabbi S., Renne J.-P.
ISSN
0883-7252
Publication state
Published
Issued date
09/2018
Volume
33
Number
6
Pages
763-779
Language
english
Abstract
We estimate time‐varying national natural real rates of interest (r∗) for the four largest economies of the euro area over 1999–2016. We further derive the associated national real interest rate gaps, which gauge the perceived monetary policy stance in each country. We find that the average r∗ have been lower after 2008. Furthermore, national r∗ were significantly negative in southern countries during the sovereign crisis. As their effective real rates soared, national rate gaps across the euro area diverged. However, a common policy stance has been restored since 2014 as the European Central Bank's unconventional programs gathered pace.
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07/06/2019 8:11
Last modification date
20/08/2019 13:29
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