Testing for Asymmetries in the Preferences of the Euro-Area Monetary Policymaker (FEP Working Paper Nº 182, Faculdade de Economia da Universidade do Porto, Julho 2005)

Bibliographic Details
Main Author: Álvaro Aguiar
Publication Date: 2005
Other Authors: Manuel Mota Freitas Martins
Format: Report
Language: eng
Source: Repositórios Científicos de Acesso Aberto de Portugal (RCAAP)
Download full: https://hdl.handle.net/10216/71353
Summary: This paper tests for asymmetries in the preferences of the Euro-Area monetary policymaker with 1995:I-2005:II data from the last update of the ECB's Area-wide database. Following the relevant literature, we distinguish between three types of asymmetry: precautionary demand for expansions, precautionary demand for price stability and interest rate smoothing asymmetry. Based on the joint GMM estimation of the Euler equation of optimal policy and the AS-AD structure of the macroeconomy, we find evidence of precautionary demand for price stability in the preferences revealed by the monetary policymaker. This type of asymmetry is consistent with the ECB's definition of price stability and with the priority of credibility-building by a recently created monetary authority.
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spelling Testing for Asymmetries in the Preferences of the Euro-Area Monetary Policymaker (FEP Working Paper Nº 182, Faculdade de Economia da Universidade do Porto, Julho 2005)Economia, Economia e gestãoEconomics, Economics and BusinessThis paper tests for asymmetries in the preferences of the Euro-Area monetary policymaker with 1995:I-2005:II data from the last update of the ECB's Area-wide database. Following the relevant literature, we distinguish between three types of asymmetry: precautionary demand for expansions, precautionary demand for price stability and interest rate smoothing asymmetry. Based on the joint GMM estimation of the Euler equation of optimal policy and the AS-AD structure of the macroeconomy, we find evidence of precautionary demand for price stability in the preferences revealed by the monetary policymaker. This type of asymmetry is consistent with the ECB's definition of price stability and with the priority of credibility-building by a recently created monetary authority.20052005-01-01T00:00:00Zinfo:eu-repo/semantics/publishedVersioninfo:eu-repo/semantics/reportapplication/pdfhttps://hdl.handle.net/10216/71353engÁlvaro AguiarManuel Mota Freitas Martinsinfo:eu-repo/semantics/openAccessreponame:Repositórios Científicos de Acesso Aberto de Portugal (RCAAP)instname:FCCN, serviços digitais da FCT – Fundação para a Ciência e a Tecnologiainstacron:RCAAP2025-02-27T19:19:30Zoai:repositorio-aberto.up.pt:10216/71353Portal AgregadorONGhttps://www.rcaap.pt/oai/openaireinfo@rcaap.ptopendoar:https://opendoar.ac.uk/repository/71602025-05-28T23:14:49.510637Repositórios Científicos de Acesso Aberto de Portugal (RCAAP) - FCCN, serviços digitais da FCT – Fundação para a Ciência e a Tecnologiafalse
dc.title.none.fl_str_mv Testing for Asymmetries in the Preferences of the Euro-Area Monetary Policymaker (FEP Working Paper Nº 182, Faculdade de Economia da Universidade do Porto, Julho 2005)
title Testing for Asymmetries in the Preferences of the Euro-Area Monetary Policymaker (FEP Working Paper Nº 182, Faculdade de Economia da Universidade do Porto, Julho 2005)
spellingShingle Testing for Asymmetries in the Preferences of the Euro-Area Monetary Policymaker (FEP Working Paper Nº 182, Faculdade de Economia da Universidade do Porto, Julho 2005)
Álvaro Aguiar
Economia, Economia e gestão
Economics, Economics and Business
title_short Testing for Asymmetries in the Preferences of the Euro-Area Monetary Policymaker (FEP Working Paper Nº 182, Faculdade de Economia da Universidade do Porto, Julho 2005)
title_full Testing for Asymmetries in the Preferences of the Euro-Area Monetary Policymaker (FEP Working Paper Nº 182, Faculdade de Economia da Universidade do Porto, Julho 2005)
title_fullStr Testing for Asymmetries in the Preferences of the Euro-Area Monetary Policymaker (FEP Working Paper Nº 182, Faculdade de Economia da Universidade do Porto, Julho 2005)
title_full_unstemmed Testing for Asymmetries in the Preferences of the Euro-Area Monetary Policymaker (FEP Working Paper Nº 182, Faculdade de Economia da Universidade do Porto, Julho 2005)
title_sort Testing for Asymmetries in the Preferences of the Euro-Area Monetary Policymaker (FEP Working Paper Nº 182, Faculdade de Economia da Universidade do Porto, Julho 2005)
author Álvaro Aguiar
author_facet Álvaro Aguiar
Manuel Mota Freitas Martins
author_role author
author2 Manuel Mota Freitas Martins
author2_role author
dc.contributor.author.fl_str_mv Álvaro Aguiar
Manuel Mota Freitas Martins
dc.subject.por.fl_str_mv Economia, Economia e gestão
Economics, Economics and Business
topic Economia, Economia e gestão
Economics, Economics and Business
description This paper tests for asymmetries in the preferences of the Euro-Area monetary policymaker with 1995:I-2005:II data from the last update of the ECB's Area-wide database. Following the relevant literature, we distinguish between three types of asymmetry: precautionary demand for expansions, precautionary demand for price stability and interest rate smoothing asymmetry. Based on the joint GMM estimation of the Euler equation of optimal policy and the AS-AD structure of the macroeconomy, we find evidence of precautionary demand for price stability in the preferences revealed by the monetary policymaker. This type of asymmetry is consistent with the ECB's definition of price stability and with the priority of credibility-building by a recently created monetary authority.
publishDate 2005
dc.date.none.fl_str_mv 2005
2005-01-01T00:00:00Z
dc.type.status.fl_str_mv info:eu-repo/semantics/publishedVersion
dc.type.driver.fl_str_mv info:eu-repo/semantics/report
format report
status_str publishedVersion
dc.identifier.uri.fl_str_mv https://hdl.handle.net/10216/71353
url https://hdl.handle.net/10216/71353
dc.language.iso.fl_str_mv eng
language eng
dc.rights.driver.fl_str_mv info:eu-repo/semantics/openAccess
eu_rights_str_mv openAccess
dc.format.none.fl_str_mv application/pdf
dc.source.none.fl_str_mv reponame:Repositórios Científicos de Acesso Aberto de Portugal (RCAAP)
instname:FCCN, serviços digitais da FCT – Fundação para a Ciência e a Tecnologia
instacron:RCAAP
instname_str FCCN, serviços digitais da FCT – Fundação para a Ciência e a Tecnologia
instacron_str RCAAP
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reponame_str Repositórios Científicos de Acesso Aberto de Portugal (RCAAP)
collection Repositórios Científicos de Acesso Aberto de Portugal (RCAAP)
repository.name.fl_str_mv Repositórios Científicos de Acesso Aberto de Portugal (RCAAP) - FCCN, serviços digitais da FCT – Fundação para a Ciência e a Tecnologia
repository.mail.fl_str_mv info@rcaap.pt
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