IDEAS home Printed from https://ideas.repec.org/a/ids/ijepee/v19y2024i2p123-140.html
   My bibliography  Save this article

Consumer price index, real estate price weight and monetary policy in the Czech Republic

Author

Listed:
  • FrantiÅ¡ek Táborský

Abstract

This paper discusses the current CPI methodology and its approach to real estate prices in the Czech Republic. The author presents an alternative calculation with a higher weight of real estate prices, which significantly changes the course of inflation in the period from 2010 to 2019. However, setting a new weight has a number of problems and no clear solution. Different calculation of inflation would also have a significant impact on the monetary policy stance and the level of the key interest rate. The beginning of the period under review indicates a lower level of interest rates and the introduction of negative rates or another form of monetary conditions easing. On the other hand, the subsequent rise in real estate prices would also lead to higher interest rates, which in the extreme scenario would be up to 75 bps higher in 2017 compared to the baseline scenario.

Suggested Citation

  • FrantiÅ¡ek Táborský, 2024. "Consumer price index, real estate price weight and monetary policy in the Czech Republic," International Journal of Economic Policy in Emerging Economies, Inderscience Enterprises Ltd, vol. 19(2), pages 123-140.
    • Handle: RePEc:ids:ijepee:v:19:y:2024:i:2:p:123-140
    as

    Download full text from publisher

    File URL: http://www.inderscience.com/link.php?id=138468
    Download Restriction: Access to full text is restricted to subscribers.
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    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:ids:ijepee:v:19:y:2024:i:2:p:123-140. 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: Sarah Parker (email available below). General contact details of provider: http://www.inderscience.com/browse/index.php?journalID=219 .

    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.