An Empirical Analysis of the Taylor Rule and its Application to Monetary Policy: A Case for the United Kingdom and Euro Area

Abstract

This paper analyses the Taylor rule and its application to monetary policy in the United Kingdom and Euro area. The analysis uses a linear regression on quarterly economic data from 1993Q1 to 2017Q4 for the United Kingdom and 2000Q1 to 2016Q4 for the Euro area. The results show that the Taylor rule does not fully describe the monetary policy actions made by the Bank of England and European Central Bank over the period analysed; and, that both central banks engage in a significant level of interest rate smoothing. The results also suggest that the Taylor rule does not provide the rationale for quantitative easing within the two regions and that interest rates should be higher than they currently are.

The Dynamic Nexus of Digital Evolution, Environmental Turbulence and Environmental Performance: A Case of High-Tech Industries in the Emerging 4th Industrial Revolution

“…The measurement items of the current research consist of five variables that include market turbulence (MKT), technological turbulence (TET), environmental turbulence (ENT), digital evolution (DIE) and environmental performance (ENP). Among the variables of digital evolution are adopted from the study of (Nylén and Holmström, 2015;Bhattarai and Carter, 2018), items of environmental turbulence, technological turbulence and market turbulence are adopted from (Pavlou, and El Sawy, 2011), whereas, items of environmental performance are adopted from (Chowdhury et al, 2014;Boutayeba, 2017).…”

The Integrity of Local Enforcement Officers: Self Proclaim vs Colleague Perception

“…The acts of corruption were triggered when the individuals feel that they are underpaid together with high workload burden. Eitle et al 2014, Bhattarai & Carter (2018) reveals that higher salary can motivate the individuals, reduce opportunity of misconduct and unwanted behaviour. This is supported by Schulze et al (2016) who analysed corruption incidents in Russian region.…”

Döviz Kuru İle Genişletilmiş Taylor Kuralı: Panel Veri Analizi

“…Bhattarai, K., & Carter, M. (2018), Taylor kuralını ve İngiltere ve Euro bölgesindeki para politikasına uygulanmasını analiz etmiştir. Analizde, Birleşik Krallık için 1993 birinci çeyrek-2017 dördüncü çeyrek ekonomik veriler üzerinde çeyreklik ekonomik veriler üzerinde ve Euro bölgesi için 2000 birinci çeyrek-2016 dördüncü çeyrek doğrusal bir regresyon kullanmıştır.…”