THE IMPACT OF THE ZERO LOWER BOUNDED FOREIGN INTEREST RATES ON A SMALL OPEN ECONOMY

Result code in IS VaVaI
<a href="https://www.isvavai.cz/riv?ss=detail&h=RIV%2F00216224%3A14560%2F16%3A00094232" target="_blank" >RIV/00216224:14560/16:00094232 - 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
THE IMPACT OF THE ZERO LOWER BOUNDED FOREIGN INTEREST RATES ON A SMALL OPEN ECONOMY
Original language description
In the paper we analyze the small open economy widely influenced by the foreign economy with bounded interest rates. We analyze the foreign interest rates pass through into a small open economy and impact of the Zero Lower Bound. To evaluate this impact in a real economy we used a dynamic stochastic model of general equilibrium of a small open economy estimated on Czech and European data series. The constraint on the foreign interest rates is modelled using new computational tool DynareOBC designed and created by Tom Holden. In the second part of our analysis we deal with the foreign capital flows that are implied by the interest rate differential. Czech National Bank uses a nominal exchange rate as an unconventional monetary policy instrument. Stable level of exchange rate may attract foreign investors and that generates pressure on appreciation of the FX rate and the central bank must intervene.
Czech name
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Czech description
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Publication year
2016
Confidentiality
S - Úplné a pravdivé údaje o projektu nepodléhají ochraně podle zvláštních právních předpisů

Article name in the collection
3rd International Multidisciplinary Scientific Conference on Social Sciences and Arts, SGEM 2016
ISBN
9786197105766
ISSN
2367-5659
e-ISSN
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Number of pages
8
Pages from-to
801-808
Publisher name
STEF92 TECHNOLOGY LTD, Sofia
Place of publication
Sofia
Event location
Albena, BULGARIA
Event date
Jan 1, 2016
Type of event by nationality
EUR - Evropská akce
UT code for WoS article
000395727200105

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