Implications of the financial crisis to the relevance of Taylor rule Case study: European Union
The recent global economic crisis has caused huge losses not only financial but also and more important losses related to the general confidence in the ability of the science of economics to contribute to the political decision making in a manner that will ensure an economic, social and sustainable...
| Main Authors: | , |
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| Format: | Article |
| Language: | English |
| Published: |
General Association of Economists from Romania
2014-05-01
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| Series: | Theoretical and Applied Economics |
| Subjects: | |
| Online Access: |
http://store.ectap.ro/articole/986.pdf
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| Summary: | The recent global economic crisis has caused huge losses not only
financial but also and more important losses related to the general confidence in
the ability of the science of economics to contribute to the political decision making
in a manner that will ensure an economic, social and sustainable development on
the long run. To this regards, the science of economics, as any other science, must
constantly review all its mainstream theories, theories that in time have been
implemented by most of the economic policymakers around the world. The Taylor
rule is a central element in the decision making process of monetary policy rates
set by most central banks, both in developed and emerging economies .
This paper proposes an analysis of the Taylor rule efficiency in terms of achieving
the objectives of the monetary policy throughout the European Union, and to
briefly outline some possible adjustments taking into account the unique specificity
of these economies. |
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| ISSN: | 1841-8678 1844-0029 |