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Support for export as a non-standard Central Bank policy: foreign exchange interventions in the case of the Czech Republic

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  • David KRIZEK

    (Czech University of Life Sciences Prague, Czech Republic)

  • Josef BRCAK

    (Czech University of Life Sciences Prague, Prague, Czech Republic)

Abstract

Because of the crisis and, inter alia, to restore economic growth, some central banks have applied a non-standard monetary policy. In the case of the Czech Republic, this was in the form of foreign exchange interventions to support exports. Export is divided into sub-parts, which are examined by mainly using regression analysis in terms of changes in central bank indicators. The results show that foreign exchange interventions indeed had a positive impact on total exports, though considerably asymmetric. The standard instrument of the central bank, the Policy Interest Rate, has a much more significant impact on the industry.

Suggested Citation

  • David KRIZEK & Josef BRCAK, 2021. "Support for export as a non-standard Central Bank policy: foreign exchange interventions in the case of the Czech Republic," Eastern Journal of European Studies, Centre for European Studies, Alexandru Ioan Cuza University, vol. 12, pages 191-218, June.
    • Handle: RePEc:jes:journl:y:2021:v:12:p:191-218
    DOI: https://doi.org/10.47743/ejes-2021-0108
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