Behavior of the Czech small open economy in the conditions of occasionally binding constraints
The result's identifiers
Result code in IS VaVaI
<a href="https://www.isvavai.cz/riv?ss=detail&h=RIV%2F00216224%3A14560%2F18%3A00103732" target="_blank" >RIV/00216224:14560/18:00103732 - isvavai.cz</a>
Result on the web
<a href="https://mme2018.fm.vse.cz/wp-content/uploads/2018/09/MME2018-Electronic_proceedings.pdf" target="_blank" >https://mme2018.fm.vse.cz/wp-content/uploads/2018/09/MME2018-Electronic_proceedings.pdf</a>
DOI - Digital Object Identifier
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Alternative languages
Result language
angličtina
Original language name
Behavior of the Czech small open economy in the conditions of occasionally binding constraints
Original language description
The period of economic recovery after the Great Recession was marked by utilization of non-standard monetary policy tools, such as quantitative easing or exchange rate interventions, by the central banks around the globe. In this paper we model the behavior of the Czech small open economy in the conditions of nonstandard monetary policy with the use of DSGE model with occasionally binding constraints. We compare the baseline model to the alternative set-up, where the development of domestic and foreign policy interest rates and nominal exchange rate is restricted to given bounds. We investigate the behavior of model economy using the impulse response functions under the assumption that the limiting bounds are fully anticipated by the rational economic agents. We show that the effects of given constraints largely depend on the type of particular exogenous shock. While responses to some may remain unaffected, the rest gets to a certain extent amplified or dampened.
Czech name
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Czech description
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Classification
Type
D - Article in proceedings
CEP classification
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OECD FORD branch
50202 - Applied Economics, Econometrics
Result continuities
Project
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Continuities
S - Specificky vyzkum na vysokych skolach
Others
Publication year
2018
Confidentiality
S - Úplné a pravdivé údaje o projektu nepodléhají ochraně podle zvláštních právních předpisů
Data specific for result type
Article name in the collection
36th International Conference Mathematical Methods in Economics Conference Proceedings
ISBN
9788073783723
ISSN
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e-ISSN
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Number of pages
6
Pages from-to
612-617
Publisher name
Faculty of Management, University of Economics
Place of publication
Prague
Event location
Prague
Event date
Jan 1, 2018
Type of event by nationality
EUR - Evropská akce
UT code for WoS article
000507455300106