Monetary policy, indebtedness and debt service costs
The result's identifiers
Result code in IS VaVaI
<a href="https://www.isvavai.cz/riv?ss=detail&h=RIV%2F61989100%3A27510%2F16%3A86099826" target="_blank" >RIV/61989100:27510/16:86099826 - isvavai.cz</a>
Result on the web
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DOI - Digital Object Identifier
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Alternative languages
Result language
angličtina
Original language name
Monetary policy, indebtedness and debt service costs
Original language description
Nowadays, there is a broad agreement on the need to separate monetary policy and fiscal policy from the debt management due to different goals and instruments of these policies. This paper examines how the change of monetary policy influences government debt-to-GDP ratio and its effective interest rate in the Czech Republic. The primary objective of monetary policy is price stability (inflation targeting) which might be in conflict with the debt management goal to minimize debt servicing cost with respect to risk objectives. We use the Czech PRIBOR rate to proxy for the CNB's key monetary policy rate, i.e. the two-week repo, in a similar way to which it is done in CNB's forecasting system. Preliminary results from the impulse response analysis based on estimated FAVAR model suggest that the change in PRIBOR rate significantly influences indebtedness and debt servicing costs in the Czech Republic.
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
<a href="/en/project/GA16-22540S" target="_blank" >GA16-22540S: "Eye for eye?" Restoring Fiscal and Financial Stability without Jeopardizing Monetary Stability</a><br>
Continuities
P - Projekt vyzkumu a vyvoje financovany z verejnych zdroju (s odkazem do CEP)
Others
Publication year
2016
Confidentiality
S - Úplné a pravdivé údaje o projektu nepodléhají ochraně podle zvláštních právních předpisů
Data specific for result type
Article name in the collection
Managing and Modelling of Financial Risks : proceedings of the 8th international scientific conference : September 5-6, 2016, Ostrava, Czech Republic
ISBN
978-80-248-3994-3
ISSN
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e-ISSN
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Number of pages
5
Pages from-to
285-290
Publisher name
VŠB - Technical University of Ostrava
Place of publication
Ostrava
Event location
Ostrava
Event date
Sep 5, 2016
Type of event by nationality
WRD - Celosvětová akce
UT code for WoS article
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