Monetary policy and stability of Czech economy: optimal commitment policy in NOEM DSGE framework

Result code in IS VaVaI
<a href="https://www.isvavai.cz/riv?ss=detail&h=RIV%2F00216224%3A14560%2F08%3A00027071" target="_blank" >RIV/00216224:14560/08:00027071 - isvavai.cz</a>
Result on the web
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DOI - Digital Object Identifier
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Result language
angličtina
Original language name
Monetary policy and stability of Czech economy: optimal commitment policy in NOEM DSGE framework
Original language description
This article estimates the dynamic behavior of the Czech economy and preference of the Czech National Bank. New Keynesian DSGE small open economy model developed by J.Gali and T.Monacelli with optimal commitment monetary policy is considered. The articleuses the solution for optima commitment policy proposed by R.Dennis. Estimates of the model parameters are obtained by Bayesian estimation technique with use of the Metropolis-Hastings algorithm and the Kalman filter. The diagnostics proposed by R.Brooks and A.Gelman and J.Geweke are carried out to examine the convergence of the Markov chain. The behavior of the Czech economy is strongly dependent on production technology and the foreign economy development. Latter is the result of high openness of theCzech economy. Next, we found out that the Czech National Bank pays little attention to output stabilization in comparison to its concern over inflation targeting. The CNB attaches the highest importance to inflation stabilization.
Czech name
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Czech description
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Project
<a href="/en/project/1M0524" target="_blank" >1M0524: Research center on competitiveness of Czech economy</a><br>
Continuities
P - Projekt vyzkumu a vyvoje financovany z verejnych zdroju (s odkazem do CEP)

Publication year
2008
Confidentiality
S - Úplné a pravdivé údaje o projektu nepodléhají ochraně podle zvláštních právních předpisů

Book/collection name
Tomeš, Zdeněk - Žídek, Libor. Determinanty hospodářského růstu v zemích východní Evropy
ISBN
978-80-210-4786-0
Number of pages of the result
52
Pages from-to
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Number of pages of the book
458
Publisher name
Masarykova Univerzita
Place of publication
Brno
UT code for WoS chapter
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