15 The Experience of the Czech National Bank
Author: Oldrich Dedek
Language:
English
Keywords:
BOOK; inflation-targeting regime; monetary policy; policy regime; inflation-targeting country; inflation expectation; monetary policy committee; Inflation; Inflation targeting; Consumer price indexes; Price indexes; Price stabilization; Africa; Global; Europe; Australia and New Zealand; West Africa; North America; Caribbean; inflation indicator; introducing inflation targeting; monitors price; SDDS information requirement; inflation risk; Special Data Dissemination Standard (SDDS); Monetary policy frameworks

Abstract

When the Czech National Bank (CNB) announced its inflation-targeting regime at the end of 1997, the Czech Republic became the first transition economy to introduce this monetary policy framework, and it joined just a handful of advanced nations then practicing it. It should be noted, though, that this step was forced on the Czech Republic by circumstance; it was not the result of subtle theoretical considerations or careful weighing of the pros and cons of the various options. Following the currency crisis of mid-1997, the Czech Republic had lost the “nominal anchor of the transformation” in the form of a fixed exchange rate (already considerably softened, however, by a 15 percent fluctuation band), and a return to monetary targeting did not inspire any great confidence. In a way, then, the implementation of this new monetary regime helped the country out of a tight spot.

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Statistical Implications of Inflation Targeting
Getting the Right Numbers and Getting the Numbers Right
Author: Mrs. Carol S Carson, Ms. Claudia H Dziobek, and Mr. Charles Enoch
ISBN:
9781589061323
Publication Date:
25 Sep 2002
Publisher:
International Monetary Fund
DOI:
https://doi.org/10.5089/9781589061323.071
Pages:
396

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