Alan Greenspan and the ECB: Different Policies, Different Results

Publication Date: February 2002

Publisher: Center for Economic and Policy Research

Author(s): Dean Baker

Research Area: Banking and finance

Keywords: Unemployment rate; Interest rate; GDP per capita

Type: Report

Coverage: United States

Abstract:

This paper compares the monetary policies pursued by the European Central Bank (ECB) and the Federal Reserve Board. It notes that the Fed has been far more aggressive in using monetary policy to reduce unemployment, which could explain much of the difference in the unemployment rates between the United States and the euro zone nations.