What We Know About Monetary Policy Transmission in the Czech Republic: Collection of Empirical Results

Oxana Babecká-Kucharčuková, Michal Franta, Dana Hájková, Petr Král, Ivana Kubicova, Anca Pruteanu-Podpiera and Branislav Saxa

Research and Policy Notes from Czech National Bank, Research and Statistics Department

Abstract: This paper concentrates on describing the available empirical findings on monetary policy transmission in the Czech Republic. Besides the overall impact of monetary policy on inflation and output, it is useful to study its individual channels, in particular the interest rate channel, the exchange rate channel, and the wealth channel. The results confirm that the transmission of monetary impulses to the real economy works in an intuitive direction and to an intuitive extent. Our analyses show, however, that the global financial and economic crisis might have somewhat slowed and weakened the transmission. We found an indication of such a change in the functioning of the interest rate channel, where elevated risk premiums played a major role.

Keywords: Bayesian; monetary policy transmission; time-varying parameters; VAR model. (search for similar items in EconPapers)
JEL-codes: C11 C32 E44 E52 E58 (search for similar items in EconPapers)
Date: 2013-10
New Economics Papers: this item is included in nep-cba, nep-mac, nep-mon and nep-tra
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (18)

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Persistent link: https://EconPapers.repec.org/RePEc:cnb:rpnrpn:2013/01

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