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Transparency and Credibility of Monetary Policy in Transition Countries: The Case of the Czech Republic

Roman Matousek ; Czech National Bank, Prague, Czech Republic


Puni tekst: engleski pdf 612 Kb

str. 91-104

preuzimanja: 646

citiraj


Sažetak

This paper studies as to what asset price can tell us about the evolving credibility of the monetary policy of the Czech National Bank (CNB). The focus of our analysis is to examine the effect of changes in the two-week repo rate (the official interest rate) on short and long–maturity market interest rates. Argument relies on information asymmetry and the existence of a stationary stochastic equilibrium with full knowledge of authorities reaction function.

Ključne riječi

direct inflation targeting (DIT); interest rate; repo operations; short maturity yield

Hrčak ID:

34734

URI

https://hrcak.srce.hr/34734

Datum izdavanja:

1.11.2001.

Posjeta: 1.294 *