Taylor rule; European monetary integration; Regime switching models; Interest rate smoothing.

The British opt-out from the European Monetary Union: empirical evidence from monetary policy rules

JEL codes: 
E32, E52
Version Date: 
Nov 2011

We analyze the current state of the monetary integration in Europe focusing on the UK position regarding the European Monetary
Union. The interest rates decisions of the European Central Bank
and the Bank of England are compared through different specifications of the Taylor Rule.

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