Hits and Misses: Ten Years of Czech Inflation Targeting (Introduction)

Katerina Smidkova and Aleš Bulíø
Additional contact information
Aleš Bulíø: International Monetary Fund, http://www.imf.org/external/index.htm
Authors registered in the RePEc Author Service: Ales Bulir

Czech Journal of Economics and Finance (Finance a uver), 2008, vol. 58, issue 09-10, 398-405

Abstract: The first 10 years of Czech Republic's inflation targeting regime have been remarkable by the persistent undershooting of the inflation targets. This article is an introduction to a special issue aimed at analyzing the factors of the undershooting. The articles in this issue explore the following hypotheses: the impact of a series of counter-inflationary shocks; a biased forecasting system; a faulty decision-making system; and the role of inflation expectations. Based on a meta-analysis of the articles, this introduction suggests that the undershooting cannot be explained by a single factor, although counter-inflationary shocks are identified most frequently. The impact of the undershooting on central bank credibility was modest, partly because the forecasts were accompanied by explicit discussions of the forecast risks.

Keywords: inflation targeting; forecasting system; inflation expectations (search for similar items in EconPapers)
JEL-codes: E31 E47 E52 E58 (search for similar items in EconPapers)
Date: 2008
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://journal.fsv.cuni.cz/storage/1139_1139_0__smidkova-bulir-cihak.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:fau:fauart:v:58:y:2008:i:9-10:p:398-405

Access Statistics for this article

More articles in Czech Journal of Economics and Finance (Finance a uver) from Charles University Prague, Faculty of Social Sciences Contact information at EDIRC.
Bibliographic data for series maintained by Natalie Svarcova ().