|
|
How Does Monetary Policy Change? Evidence on Inflation Targeting Countries
Baxa, Jaromír ; Horváth, R. ; Vašíček, B.
We examine the evolution of monetary policy rules in a group of inflation targeting countries (Australia, Canada, New Zealand, Sweden and the United Kingdom), applying a moment-based estimator in a time-varying parameter model with endogenous regressors. Using this novel flexible framework, our main findings are threefold. First, monetary policy rules change gradually, pointing to the importance of applying a time-varying estimation framework. Second, the interest rate smoothing parameter is much lower than typically reported by previous time-invariant estimates of policy rules. External factors matter for all countries, although the importance of the exchange rate diminishes after the adoption of inflation targeting. Third, the response of interest rates to inflation is particularly strong during periods when central bankers want to break a record of high inflation, such as in the UK or Australia at the beginning of the 1980s.
|
|
| |
|
|
Below Zero: Economics of Negative Interest Rate
Stroukal, Dominik ; Šťastný, Daniel (advisor) ; Špecián, Petr (referee)
This paper discusses the issue of negative nominal interest rate. Consistent following of Taylor's rule may lead to recommendations to adjust the interest rate below its zero bound. Although the negative nominal interest rate is considered to be impossible, proposals that can make it possible are presented. Their common impact is raising the cost of holding money. It is proven that without a statutory anchor and enforcement this policy of raising the cost of holding money cannot work. Since the originary rate of interest cannot be negative, the whole concept of negative nominal interest rates is only an unconventional form of taxation.
|
|
|
Comparison of crisis in Czech Republic in years 1997/1997 and crisis in USA in years 2008/2009
Bolehovský, Petr ; Pichaničová, Ludmila (advisor) ; Maleček, Petr (referee)
This bachelors work compares the crisis in Czech republic in years 1997/1998 and crisis in USA in years 2008/2009. It firstly focuses on theoretical concept of financial markets and monetary policy. Then it describes Taylor rule, political cycle and money aggregates. Next chapter focuses on the causes of crisis in Czech republic and on factors that to started and prolonged this crisis. Next chapter focuses on the causes of crisis in USA and on factors that started and prolonged this crisis. This work points to differences and common signs of them. In the end it explains some mistakes that government and central banks should avoid in their policies.
|
|
|
Měnová politika a ECB
Strejc, Daniel ; Klosová, Anna (advisor) ; Coniglio, Nicola (referee)
The thesis evaluates the ECB's monetary policy during the past decade by using policy rules and compares the suitability to particular members of the Eurozone. It examines the central bank's reaction function regarding the output and inflation. The work is divided into two main parts. First, gives the theoretical introduction of monetary policy and evaluation of the Eurozone regarding the theory of optimal currency area. In the second part it provides the econometric models and estimates. As a conclusion the results of two different OLS models show that, we cannot precisely decide to which variable the ECB reacted, as obtained two statistically significant models but with different results. For two models is used different variables GDP gap and IPI gap. The results have also shown that the ECB's monetary policy mostly suits to biggest economies within the Eurozone.
|
guest ::
