Reaction of central banks to federal reserve at zero lower bound
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Özet (EN)
This study has been carried out on 25 different economies so as to determine how much central banks give place to federal reserve in reaction functions and to what extent this reaction changed with the effect of the financial crisis of 2008. The model to which federal funds rate was added as an independent variable was tested with OLS econometric method separately for 2000-2007 and 2008-2014 periods. According to the empirical evidence, the reaction of most of the countries to the US economy, which is the leading country of the world's biggest economies, turned out to be statistically 5% significant at the level of significance. However, together with this reaction's continuation for many countries after the crisis, it changed dramatically for each country when examined country-by-country. In addition, time varying regression method was used in this study so as to both differentiate it from literature and also to confirm the results with a different method. First findings were accordingly strengthened with the obtained results. Keywords: Monetary Policy, Taylor Rule, Time Varying Regression, Zero Lower Bound
Yazar
Ümit Güner
Bu Yayına Nasıl Atıf Yapılır
Ümit Güner (Master Thesis). Reaction of central banks to federal reserve at zero lower bound, 2016, TOBB Economics and Technology University.
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