Causes of Deviations from the CNB’s Inflation Targets: An Empirical Analysis

Tomas Holub

Czech Journal of Economics and Finance (Finance a uver), 2008, vol. 58, issue 09-10, 425-433

Abstract: This paper provides an empirical analysis of the factors that caused deviations from the CNB’s inflation targets during the first ten years of inflation targeting in the Czech Republic. While in the short term, shocks to agricultural producer prices represent the most important factor, exchange rate shocks are clearly the most important medium-term factor. At the same time, it could not be proved that monetary policy created any major shocks contributing to the non-fulfillment of inflation targets, although some role thereof cannot be excluded either.

Keywords: inflation targeting; VAR model; exchange rate (search for similar items in EconPapers)
JEL-codes: E31 E52 E58 (search for similar items in EconPapers)
Date: 2008
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Citations: View citations in EconPapers (7)

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Persistent link: https://EconPapers.repec.org/RePEc:fau:fauart:v:58:y:2008:i:9-10:p:425-433

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