Zero lower bound on interest rate: application of DSGE model on Czech economy
The result's identifiers
Result code in IS VaVaI
<a href="https://www.isvavai.cz/riv?ss=detail&h=RIV%2F00216224%3A14560%2F14%3A00076454" target="_blank" >RIV/00216224:14560/14:00076454 - isvavai.cz</a>
Result on the web
<a href="http://mme2014.upol.cz/downloads/MME_2014_Proceedings.pdf" target="_blank" >http://mme2014.upol.cz/downloads/MME_2014_Proceedings.pdf</a>
DOI - Digital Object Identifier
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Alternative languages
Result language
angličtina
Original language name
Zero lower bound on interest rate: application of DSGE model on Czech economy
Original language description
This paper deals with impacts of zero lower bound of interest rate on behaviour of macroeconomic variables in the Czech economy. The analysis uses DSGE model of small open economy, concretely model from Justiniano and Preston (2004), and toolkit from Guerrieri and Iacoviello (2014) that is able to solve occasionally binding constraint. The model is estimated on data of the Czech economy covering period 1996:Q2 -- 2013:Q4. The behaviour of the model is studied using impulse responses and simulations in reaction to model specific shocks. Situation when central bank is incapable to decrease interest rate because of zero lower bound has implications for behaviour of output and consumption but not inflation. Shocks that cause binding of interest rate for most periods are domestic cost-push shock and foreign preference shock. These two shocks also have non-negligible welfare implications regarding behaviour of consumption.
Czech name
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Czech description
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Classification
Type
D - Article in proceedings
CEP classification
AH - Economics
OECD FORD branch
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Result continuities
Project
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Continuities
S - Specificky vyzkum na vysokych skolach
Others
Publication year
2014
Confidentiality
S - Úplné a pravdivé údaje o projektu nepodléhají ochraně podle zvláštních právních předpisů
Data specific for result type
Article name in the collection
Proceedings of 32nd International Conference Mathematical Methods in Economics
ISBN
9788024442099
ISSN
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e-ISSN
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Number of pages
6
Pages from-to
293-298
Publisher name
Palacký University
Place of publication
Olomouc
Event location
Olomouc
Event date
Jan 1, 2014
Type of event by nationality
EUR - Evropská akce
UT code for WoS article
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