Implementing Yield Curve Control Measures into the CNB Core Forecasting Model

František Brázdik, Karel Musil and Stanislav Tvrz

Working Papers from Czech National Bank, Research and Statistics Department

Abstract: In response to the 2008 financial crisis, when policy rates hit their lower bound, central banks adopted unconventional policies to meet their announced targets. These policies can either directly target interest rates or the quantities of assets. Taking into account the specific features of the Czech economy, this paper presents an extension of the CNB's core projection model for long-term assets and yield curve control measures. This extension demonstrates the ability of the CNB to consider and assess various unconventional policies within its analytical framework.

Keywords: DSGE models; inflation targeting; quantitative easing; unconventional monetary policy; yield curve (search for similar items in EconPapers)
JEL-codes: E32 E37 E43 E58 (search for similar items in EconPapers)
Date: 2023-08
New Economics Papers: this item is included in nep-ban, nep-cba, nep-dge and nep-mon
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Persistent link: https://EconPapers.repec.org/RePEc:cnb:wpaper:2023/8

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