Czech Magic: Implementing Inflation-Forecast Targeting at the CNB

Kevin Clinton, Tibor Hlédik, Tomas Holub, Douglas Laxton and Hou Wang

No 2017/021, IMF Working Papers from International Monetary Fund

Abstract: This paper describes the CNB’s experience implementing an inflation-forecast targeting (IFT) regime, and the building of a system for providing the economic information that policymakers need to implement IFT. The CNB’s experience has been very successful in establishing confidence in monetary policy in the Czech Republic and should provide useful guidance for other central banks that are considering adopting an IFT regime.

Keywords: WP; interest rate path; transmission mechanism; output gap; financial market; IFT monetary policy framework; rate of inflation; Inflation Targeting; Monetary Policy; Optimal Control; monetary policy model; reaction function; market interest rate outlook; nominal interest rate; Policy interest rate decision; IFT central bank; Inflation; Central bank policy rate; Exchange rates; Short term interest rates; Global (search for similar items in EconPapers)
Pages: 56
Date: 2017-01-30
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Citations: View citations in EconPapers (12)

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