IDEAS home Printed from https://ideas.repec.org/p/wpa/wuwpma/0303019.html
   My bibliography  Save this paper

The Czech Approach to Inflation Targeting

Author

Listed:
  • Miroslav Hrncir

    (Czech National Bank)

  • Katerina Smidkova

    (Czech National Bank)

Abstract

The introduction of inflation targeting (IT) by the Czech National Bank in 1997 was an important event in history of IT since the Czech Republic was the first transitional country to adopt it. This study has been the first document describing consistently the Czech approach to IT. It reviews the reasons for a change in the Czech monetary policy strategy and focuses on issues specific to the Czech case. The study argues that IT is a strategy that can be under certain conditions adopted by central banks in countries in transition even though their typical goal is to disinflate instead of stabilising low inflation. On one hand, according to the Czech experience, IT offers several benefits, such as increasing control over expectations and short-term flexibility of monetary strategy, that are attractive for economy in transition. On the other hand, constraints imposed by period of transition as well as by openness of economy are present no matter which monetary strategy is chosen by the central bank. Implied costs should not be attributed to a particular monetary strategy.

Suggested Citation

  • Miroslav Hrncir & Katerina Smidkova, 2003. "The Czech Approach to Inflation Targeting," Macroeconomics 0303019, University Library of Munich, Germany.
    • Handle: RePEc:wpa:wuwpma:0303019
    Note: Type of Document - ; pages: 21 . Paper from Proceedings: Workshop on Inflation Targeting (1999)Czech National Bank, Prague.
    as

    Download full text from publisher

    File URL: https://econwpa.ub.uni-muenchen.de/econ-wp/mac/papers/0303/0303019.pdf
    Download Restriction: no
    ---><---

    Other versions of this item:

    Citations

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


    Cited by:

    1. García-Solanes, José & Torrejón-Flores, Fernando, 2012. "Inflation targeting works well in Latin America," Revista CEPAL, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL), April.
    2. Viktor Kotlán & David Navrátil, 2003. "Inflation Targeting as a Stabilization Tool: Its Design and Performance in the Czech Republic," Czech Journal of Economics and Finance (Finance a uver), Charles University Prague, Faculty of Social Sciences, vol. 53(5-6), pages 220-242, May.

    More about this item

    Keywords

    inflation targeting Czech Republic disinflation;

    JEL classification:

    • E - Macroeconomics and Monetary Economics

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:wpa:wuwpma:0303019. See general information about how to correct material in RePEc.

    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.

    We have no bibliographic references for this item. You can help adding them by using 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 RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: EconWPA (email available below). General contact details of provider: https://econwpa.ub.uni-muenchen.de .

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

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.