The view, discussed in economics, that central bank policies – have a very long impact lag – of up to two years, – therefore often end up achieving the opposite of what they want to achieve and – thus may exacerbate economic fluctuations. – Empirically, a short-lag assumption seems to be more likely to be confirmed for the euro area. According to this assumption, the impact lag is normally a maximum of six months; and it usually takes four to six quarters for a change in key interest rates to have its strongest effect on GDP. – See braking path, monetary, ElizabethQuestion, monetary policy, forward-looking, models, monetary, transmission mechanism, monetary, interest rate pass-through.
Attention: The financial encyclopedia is protected by copyright and may only be used for private purposes without express consent!
University Professor Dr. Gerhard Merk, Dipl.rer.pol., Dipl.rer.oec.
Professor Dr. Eckehard Krah, Dipl.rer.pol.
E-mail address: info@ekrah.com
https://de.wikipedia.org/wiki/Gerhard_Ernst_Merk
https://www.jung-stilling-gesellschaft.de/merk/
https://www.gerhardmerk.de/