抄録
We empirically examine the monetary policy of European Central Bank (ECB) after introduction of the Euro. It has been determined by the contract that the main monetary target is price stability. The policy of the Bank is successful from the view of the stability. However, importance of not only price stability but also employment as the target is increasing because of the possibility of slipping into recession.
This paper firstly focuses on the monetary policy, effects on the price stability and production in the Euro area. The method is simple econometrics, that is, the equations of monetary policy rules by ECB are estimated. The results is that ECB may place a high value on the production same as the inflation.
Secondly, the monetary policy effects are estimated through the use of the estimated monetary policy rule. The results are follows the effectiveness of monetary policy to the inflation restrain is significant, but that of the policy to deflation is not significant. It is significant that the effectiveness of the policy to both boom and recession of the real economy.
In conclusion, the ECB policy may face the problem that agreement of direction as to the policy is difficult because the participating countries have diverse preferences. Therefore, It is necessity for current Euro area that the discretionary monetary policy will be operated by ECB.
