The Fed and the ECB: why such an apparent difference in reactivity?

Altissimo, F., Sieviero, S. and Terlizzese, D. (2002), “How deep are the deep parameters?”, Annales d'Economie et de Statistiques, Vol. 67‐68, pp. 207‐26.

Ball, L. (1997), “Efficient rules for monetary policy”, NBER Working Paper Series No. 5952.

Blanchard, O. (2008), “The state of Macro”, NBER Working Paper Series No. 14259.

Chari, V., Kehoe, P. and McGrattan, E. (2008), “New‐Keynesian models are not yet useful for policy analysis”, Federal Reserve Bank of Minneapolis Working Papers.

Christiano, L., Eichenbaum, M. and Evans, C. (2005), “Nominal rigidities and the dynamic effects of a shock to monetary policy”, Journal of Political Economy, Vol. 113 No. 1, pp. 1‐45.

Christiano, L., Motto, R. and Rostagno, M. (2007), “Shocks, structures or policies? A comparison of the EA and the US”, Journal of Economic Dynamics and Control, Vol. 32, pp. 2476‐506.

Dennis, R. (2001), “The policy preferences of the US federal reserve”, Federal Reserve Bank of San Francisco, Working Paper in Applied Economic Theory 2001‐08 (accessed July 2004).

Estrella, A. and Fuhrer, J. (1999), “Are ‘Deep’ parameters stable ? The Lucas critique as an empirical hypothesis”, Federal Reserve Bank of Boston Working Papers No. 99‐4.

Estrella, A. and Fuhrer, J. (2002), “Dynamic inconsistencies: counterfactual implications of a class of rational expectations models”, American Economic Review, Vol. 92 No. 4, pp. 1013‐28.

Fagan, G., Henry, J. and Mestre, R. (2005), “An area‐wide model (AWM) for the euro area”, Economic Modelling, Vol. 22, pp. 39‐59.

Fuhrer, J. (1997), “The (un)importance of forward‐looking behavior in price specifications”, Journal of Money, Credit, and Banking, Vol. 29 No. 3, pp. 338‐50.

Gerlach‐Kristen, P. (2005), “Too little, too late: interest rate setting and the cost of consensus”, Economics Letters, Vol. 88, pp. 376‐81.

Iskrev, N. (2008), “How much do we learn from the estimation of DSGE models? A case study of identification issues in a new Keynesian business cycle model”, mimeo.

Litterman, R. (1986), “Forecasting with Bayesian vector autoregressions: five years of experience”, Journal of Business & Economic Statistics, Vol. 4 No. 1, pp. 25‐38.

McCallum, B. and Nelson, E. (1999), “Performance of operational policy rules in an estimated semi‐classical structural model”, in Taylor, J.‐B. (Ed.), Monetary Policy Rules, University of Chicago Press, Chicago, IL, pp. 15‐45.

Phillips, P. (1991a), “Bayesian routes and unit roots: De Rebus Prioribus Est Disputandum”, Journal of Applied Econometrics, Vol. 6 No. 4, pp. 453‐73.

Phillips, P. (1991b), “To criticize the critics: an objective Bayesian analysis of stochastic trends”, Journal of Applied Econometrics, Vol. 6 No. 4, pp. 333‐64.

Rotemberg, J. and Woodford, M. (1997), “An optimization‐based econometric framework for the evaluation of monetary policy”, in Bernanke, B. and Rotemberg, J. (Eds), Macroeconomics Annual, MIT Press, Cambridge, MA, pp. 297‐346.

Sahuc, J. and Smets, F. (2007), “Differences in interest rate policy at the ECB and the Fed: an investigation with a medium‐scale DSGE model”, Journal of Money, Credit and Banking, Vol. 40 No. 2‐3, pp. 505‐21.

Sims, C. (1991), “Comment on ‘To Criticize the Critics’ by Peter c.b. Phillips”, Journal of Applied Econometrics, Vol. 6 No. 4, pp. 423‐34.

Sims, C. and Uhlig, H. (1991), “Understanding unit rooters: a helicopter tour”, Econometrica, Vol. 59 No. 6, pp. 1591‐9.

Smets, F. and Wouters, R. (2005), “Comparing shocks and frictions in US and EURO business cycles: a Bayesian DSGE approach”, Journal of Applied Econometrics, Vol. 20, pp. 161‐83.

Svensson, L. (1998), “Open‐economy inflation targeting”, CEPR Discussion Paper No. 1989.

Trichet, J. (2006), “Activism and alertness in monetary policy”, paper presented at the Conference on Central Banks in the 21st Century, Bank of Spain, June 8.

Woodford, M. (2003), Interest and Prices, Foundations of a theory of Monetary Policy, Princeton University Press, Princeton, NJ.

Álvarez, L., Dhyne, E., Hoeberichts, M., Kwapil, C., Le Bihan, H., Lünnemann, P., Martins, F., Sabbatini, R., Stahl, H., Vermeulen, P. and Vilmunen, J. (2005), “Sticky prices in the euro area: a summary of new micro evidence”, ECB Working Papers No. 563.

Bils, M. and Klenow, P. (2004), “Some evidence on the importance of sticky prices”, Journal of Political Economy, Vol. 112, pp. 947‐85.

Calmfors, L. and Driffill, J. (1988), “Bargaining structure, corporatism and macroeconomic performance”, Economic Policy, Vol. 6 No. 3, pp. 13‐62.

Ehrmann, M., Gambacorta, L., Martinez‐Pages, J., Sevestre, P. and Worms, A. (2002), “Financial systems and the role of banks in monetary policy transmission in the euro area”, Notes d'Etudes et de Recherche de la Banque de France No. 93.

Hall, P. and Soskice, D. (2001), Varieties of Capitalism: The Institutional Foundations of Comparative Advantage, Oxford University Press, New York, NY.

Kashyap, A. and Stein, J. (1997), “The role of banks in monetary policy: a survey with implications for the European monetary union”, Federal Reserve Bank of Chicago Economic Perspectives, Vol. 21 No. 5, pp. 2‐18.

Nicoletti, G., Scarpetta, S. and Boylaud, O. (2000), “Summary indicators of product market regulation with an extension to employment protection legislation”, OECD Working Paper No. 226.

OECD (1997), “Economic performance and the structure of collective bargaining”, Employment Outlook, Chapter 3, OECD, Paris, pp. 70‐100.

Sellon, G. (2002), “The changing US financial system: some implications for the monetary transmission mechanism. Federal Reserve Bank of Kansas City”, Economic Review, Vol. 97 No. 1, pp. 5‐35.

Siebert, H. (1997), “Labor market rigidities: at the root of unemployment in Europe”, The Journal of Economic Perspectives, Vol. 11 No. 3, pp. 37‐54.