Efficiency Of Czech National Bank's Monetary Policy And Reasons For Inflation Targeting
This paper offers the analysis ofCzech monetary policy effectiveness during 1993-1996, which was based on the monetarist theory reconunendations. Also, the reasons for inflation targeting policy irnplementation by the Czech National Bank (CNB) are reviewed. In order to accomplish these goals, we develop money demand model based on the Keynesian approach and also use Cagan's model of hyperinflation. Then, we test the validity of these models for the Czech environment. The major conclusion from the Keynesian money demand model estirnation is that the efficiency of nominal interest rate policy is lower tmder the conditions of sudden nominal interest rate increase. Cagan's model of hyperinflation is used to investigate the stability of price level and thus to ascertain whether the Czech economyexperienced "self generating" price growth. We also analyze inflation expectations and uncertainty. Such au analysis ought to elucidate the existence of a rationale for implementing inflation targeting policy. The estirnation technique employs extended Kalmau filter with backward filter runs, which enables us to estimate parameters varying in time.
Volume (Year): 5 (1998)
Issue (Month): 8 ()
|Contact details of provider:|| Web page: http://ces.utia.cas.czEmail: |
More information through EDIRC
When requesting a correction, please mention this item's handle: RePEc:czx:journl:v:5:y:1998:i:8:id:63. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Jozef Barunik)
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.