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The Optimal Monetary Rule for the Slovak Republic

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  • Marianna Neupauerová

    ()
    (Faculty of Economics, Technical University of Koice, Slovakia)

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    Abstract

    The optimal monetary rules should help to economic agents to fortify their anticipation about monetary policy. At the same time they should make application of monetary policy by central bank more effective. Consequently, numerous central banks as well as other economic agents try to determinate an optimal monetary rule responding to given macroeconomic conditions. However, this can be very difficult especially for transition economies or post-transition countries. This is the case of the Slovak Republic; its time series are relatively short and macroeconomic environment has to face different shocks. Thus, a monetary rule should be just some kind of recommendation for monetary authority that does not have to be followed as a binding commitment.

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    Bibliographic Info

    Article provided by Savez ekonomista Vojvodine, Novi Sad, Serbia in its journal Panoeconomicus.

    Volume (Year): 53 (2006)
    Issue (Month): 1 (March)
    Pages: 79-87

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    Handle: RePEc:voj:journl:v:53:y:2006:i:1:p:79-87

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    Web page: http://www.panoeconomicus.rs/

    Related research

    Keywords: Optimal monetary rule; Taylor rule; Reaction function; Central bank; The National Bank of Slovakia;

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