Advanced Search
MyIDEAS: Login to save this article or follow this journal

Estimate of the Czech National Bank’s Preferences in NOEM DSGE model


Author Info

  • Adam Remo


  • Osvald Vašíček


Registered author(s):


    This article deals with estimation of preferences of the Czech National Bank. New Keynesian small open economy model developed by Gali and Monacelli with optimal commitment monetary policy is considered in order to estimate them. The article uses the solution for optimal commitment policy proposed by R. Dennis. Estimates of the model parameters are obtained by Bayesian estimation technique with use of the Metropolis-Hastings algorithm and the Kalman filter. The diagnostics proposed by Brooks and Gelman and Geweke are carried out to examine the konvergence of the Markov chain. We found out that the Czech National Bank pays a little attention to output stabilization in comparison to its concern over inflation targeting. The results indicates that the Czech National Bank's most important objective is inflation targeting. This result is in accordance with proclaimed monetary policy of the Czech National Bank.

    Download Info

    If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
    File URL:
    Download Restriction: no

    Bibliographic Info

    Article provided by The Czech Econometric Society in its journal Bulletin of the Czech Econometric Society.

    Volume (Year): 16 (2009)
    Issue (Month): 26 ()

    as in new window
    Handle: RePEc:czx:journl:v:16:y:2009:i:26:id:163

    Contact details of provider:
    Web page:
    More information through EDIRC

    Related research

    Keywords: monetary policy; optimal commitment policy; central bank’s preferences; small open economy; New Keynesian; DSGE; Bayesian estimation;

    Find related papers by JEL classification:


    No references listed on IDEAS
    You can help add them by filling out this form.


    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as in new window

    Cited by:
    1. M. Frömmel & G. Garabedian & F. Schobert, 2009. "Monetary Policy Rules in Central and Eastern European Countries: Does the Exchange Rate Matter?," Working Papers of Faculty of Economics and Business Administration, Ghent University, Belgium 09/611, Ghent University, Faculty of Economics and Business Administration.


    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.


    Access and download statistics


    When requesting a correction, please mention this item's handle: RePEc:czx:journl:v:16:y:2009:i:26:id:163. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Jozef Barunik).

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If references are entirely missing, you can add them using this form.

    If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.