Prague Economic Papers 1998, 7(1) | DOI: 10.18267/j.pep.143

Convergence for european union accession: challenges for czech monetary policy

Stanislava Janáčková

If the analyses of the transmission mechanisms are not fundamentally wrong, it follows that Czech Republic shares a common feature typical for EU countries: the short-term non-neutrality of money with respect to real output. Money matters , money affects real output as well as prices. There can be significant differences, however, in the time lags, as well as in the strength of impact of monetary policy on both prices and output. Future steps of the Czech Republic toward monetary integration with the EU countries (starting with ERM 11 membership) will presuppose a further convergence of the transmission mechanism of Czech monetary policy toward the mechanism prevailing within the European Union. Such convergence can only proceed hand-in-hand with continuing transformation and restructuring of the Czech economy.

Zveřejněno: 1. leden 1998  Zobrazit citaci