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Vplyv inflačných očakávaní na vývoj úrokových sadzieb v krajinách Višegrádskej štvorky
[Inflation expectations and interest rates development in the Visegrad countries]

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Author Info
Mirdala, Rajmund

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Abstract

Market interest rates are usually determined not only by the inflation related determinants but also by the forces that affect real interest rates fluctuations. In point of fact the nominal interest rates are driven by many specific determinants so that it should not be clear the nominal interest rates fluctuations are given by the changes in inflation expectations or by the changes in the expected real interest rates. The correct identification of the nominal interest rates fluctuations is simply crucial for the monetary policy decision making. In the article we analyze the sources of the nominal interest rates fluctuations in the Visegrad countries in order to identify the impact of the inflation expectations and expected real interest rates on the interest rates of the interbank deposits with different maturity using structural vector autoregression (SVAR). From the estimated model we compose the variance decomposition and the impulse-response function of the interbank deposits interest rates with the maturity 1, 3 and 6 months.

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File URL: http://mpra.ub.uni-muenchen.de/17059/
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Publisher Info
Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 17059.

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Date of creation: Mar 2009
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Handle: RePEc:pra:mprapa:17059

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Related research
Keywords: interest rates; inflation expectations; expected real interest rates; SVAR; variance decomposition; impulse-response function;

Find related papers by JEL classification:
C32 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Time-Series Models; Dynamic Quantile Regressions
E43 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Determination of Interest Rates; Term Structure of Interest Rates
E31 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Price Level; Inflation; Deflation

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  1. Mishkin, F.S., 1988. "What Does The Term Structure Tell Us About Future Inflation?," Papers fb-_88-29, Columbia - Graduate School of Business.
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This page was last updated on 2009-11-30.


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