Interest Rates and Prices Causality in the Czech Republic -- Granger Approach

Result code in IS VaVaI

<a href="https://www.isvavai.cz/riv?ss=detail&h=RIV%2F62156489%3A43110%2F09%3A00139876" target="_blank" >RIV/62156489:43110/09:00139876 - 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

Interest Rates and Prices Causality in the Czech Republic -- Granger Approach

Original language description

Monetary policy analysis concerns itself with both the assumptions of the transmission mechanism and the direction of causality between the nominal (i.e. the money) and real economy. The traditional channel of monetary policy implementation works via interest rate changes and their impact on the investment activity and the aggregate demand. Altering the relationship between the aggregate demand and supply then impacts the general price level and hence inflation. Alternatively, Post-Keynesians postulatemoney as a residual, In their approach, banks extend credit in response to movements in investment activities and demand for money. In this paper authors use the VAR (i.e. the vector autoregressive) approach applied to the "Taylor rule" concept to identify the mechanism and impact of the monetary policy in the small open post-transformation economy of the Czech Republic. The causality (in Granger sense) between the interest rate and prices in the Czech Republic is then identified. The

Czech name

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Czech description

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Type

J_x - Unclassified - Peer-reviewed scientific article (Jimp, Jsc and Jost)

CEP classification

BB - Applied statistics, operational research

OECD FORD branch

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Project

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Continuities

Z - Vyzkumny zamer (s odkazem do CEZ)

Publication year

2009

Confidentiality

S - Úplné a pravdivé údaje o projektu nepodléhají ochraně podle zvláštních právních předpisů

Name of the periodical

Agricultural economics : Zemědělská ekonomika

ISSN

0139-570X

e-ISSN

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Volume of the periodical

55

Issue of the periodical within the volume

7

Country of publishing house

CZ - CZECH REPUBLIC

Number of pages

10

Pages from-to

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UT code for WoS article

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EID of the result in the Scopus database

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