Credibility of monetary policy in four accession countries: a Markov regime-switching approach
AbstractThe aim of this study is to estimate the credibility of monetary policy in four accession countries (the Czech Republic, Hungary, Poland and the Slovak Republic), based on the Markov regime-switching (MRS) framework. We utilize the theoretical proposition that in the conduct of monetary policy, there is uncertainty in terms of the type of central bank. We measure this uncertainty as a deviation of monetary policy from a target level. We utilize for the target level the differential between the interest rates of the four individual accession countries and a 'synthetic' interest rate of 11 EMU member countries. Copyright © 2005 John Wiley & Sons, Ltd.
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Bibliographic InfoArticle provided by John Wiley & Sons, Ltd. in its journal International Journal of Finance & Economics.
Volume (Year): 10 (2005)
Issue (Month): 1 ()
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- Philip Arestis & Kostas Mouratidis, 2003. "Credibility of Monetary Policy in Four Accession Countries: A Markov Regime-Switching Approach," Economics Working Paper Archive wp_371, Levy Economics Institute.
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