The Czech Approach to Inflation Targeting
AbstractThe 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.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by EconWPA in its series Macroeconomics with number 0303019.
Length: 21 pages
Date of creation: 26 Mar 2003
Date of revision:
Note: Type of Document - ; pages: 21 . Paper from Proceedings: Workshop on Inflation Targeting (1999)Czech National Bank, Prague.
Contact details of provider:
Web page: http://22.214.171.124
inflation targeting Czech Republic disinflation;
Find related papers by JEL classification:
- E - Macroeconomics and Monetary Economics
This paper has been announced in the following NEP Reports:
- NEP-ALL-2003-04-02 (All new papers)
- NEP-EEC-2003-04-02 (European Economics)
- NEP-TRA-2003-04-02 (Transition Economics)
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Viktor Kotlan & David Navratil, 2003.
"Inflation Targeting as a Stabilisation Tool: Its Design and Performance in the Czech Republic,"
- 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.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (EconWPA).
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.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with 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 profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.