Prague Economic Papers 2000, 9(3) | DOI: 10.18267/j.pep.80

The czech embarrassment of inflation targeting in transition

Martin Mandel, Vladimír Kosmata

In 1998 the Czech National Bank (CNB) changed its monetary policy framework and started to target inflation. The article discusses main theoretical aspects of inflation targeting and some practical problems with implementation of inflation targeting. The main characteristics of the inflation and monetary targeting are described in the first and second part. The third part deals with practical issues connected with inflation targeting (number of countries using inflation targeting, quality of inflation predictions, inflation and interest rate volatility). In the final part the CNB monetary policy function is estimated and the results are compared with the theoretical assumptions of the inflation targeting.

Klíčová slova: monetary policy, transition countries, inflation targeting

Zveřejněno: 1. leden 2000  Zobrazit citaci