The Czech National Bank's Role Since the Global Crisis

Result code in IS VaVaI

<a href="https://www.isvavai.cz/riv?ss=detail&h=RIV%2F00216208%3A11230%2F16%3A10327618" target="_blank" >RIV/00216208:11230/16:10327618 - isvavai.cz</a>

Result on the web

<a href="https://www.asz.hu/storage/files/files/public-finance-quarterly-articles/2016/hledik_2016_1_a.pdf" target="_blank" >https://www.asz.hu/storage/files/files/public-finance-quarterly-articles/2016/hledik_2016_1_a.pdf</a>

DOI - Digital Object Identifier

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Result language

angličtina

Original language name

The Czech National Bank's Role Since the Global Crisis

Original language description

The Czech economy entered the global crisis with no major imbalances. Importantly, it did not suffer from the FX mortgage problem, unlike its regional peers. This was mainly a reflection of its early disinflation process accomplished under the inflation targeting regime from 1998. As a result, the CNB could allow the exchange rate to operate freely as a shock absorber during the crisis. The sharp depreciation of the Czech koruna from mid-2008 until early-2009 helped to ease the overall monetary conditions significantly, together with sharp interest rates cuts from August 2008. As a result, the CNB did not hit the ZLB constraint and got by with standard monetary policy tools in the post-Lehman phase. In 2012-2013, however, the Czech economy slid into another recession driven by very weak domestic demand. The central bank cut the interest rates further and hit the "technically zero" level in November 2012. To achieve further monetary policy easing, the CNB used forward guidance on the nominal interest rates, and established an exchange rate commitment at CZK/EUR 27 one year later. This policy measure has averted the risk of deflation driven by insufficient demand, and has contributed to a notable recovery of the Czech economy.

Czech name

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Czech description

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Type

J_x - Unclassified - Peer-reviewed scientific article (Jimp, Jsc and Jost)

CEP classification

AH - Economics

OECD FORD branch

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Project

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Continuities

I - Institucionalni podpora na dlouhodoby koncepcni rozvoj vyzkumne organizace

Publication year

2016

Confidentiality

S - Úplné a pravdivé údaje o projektu nepodléhají ochraně podle zvláštních právních předpisů

Name of the periodical

Public Finance Quarterly

ISSN

0031-496X

e-ISSN

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Volume of the periodical

61

Issue of the periodical within the volume

1

Country of publishing house

HU - HUNGARY

Number of pages

29

Pages from-to

65-93

UT code for WoS article

000382857400004

EID of the result in the Scopus database

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