The Problem of the Yearly Inflation Rate and Its Implications for the Monetary Policy of the Czech National Bank
AbstractThe yearly inflation rate might not always be an appropriate measure of inflation, mainly due to the fact that it does not provide up-to-date information on the level of inflation. The harmonic analysis shows that the yearly inflation rate deforms and delays the information with respect to the monthly inflation rate and is thus delayed behind the true inflation at yearly levels. This conclusion can be extremely important in the forecasting of the inflation rate at yearly levels and in the process of economic decision making. The problem of the yearly inflation rate is illustrated on the example of the monetary policy of the Czech National Bank. The cointegration analysis revealed the presence of the long-run relationship of the repo rate, the yearly adjusted inflation rate and the euro area repo rate in the analyzed period.
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Bibliographic InfoArticle provided by University of Economics, Prague in its journal Prague Economic Papers.
Volume (Year): 2010 (2010)
Issue (Month): 2 ()
Postal: Editorial office Prague Economic Papers, University of Economics, nám. W. Churchilla 4, 130 67 Praha 3, Czech Republic
Find related papers by JEL classification:
- C22 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models &bull Diffusion Processes
- C52 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Model Evaluation, Validation, and Selection
- E31 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Price Level; Inflation; Deflation
- E43 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Interest Rates: Determination, Term Structure, and Effects
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Josef Arlt, 1998. "The Problem of Short-term and Long-term Inflation Rate," Politická ekonomie, University of Economics, Prague, vol. 1998(5).
- Josef Arlt & Martin Mandel, 2012. "Is it Possible to Predict the CNB Repo Rate on the Basis of the Backward-Looking Monetary Rule?," Politická ekonomie, University of Economics, Prague, vol. 2012(4), pages 484-504.
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