Study on the Impact of CNB's Foreign Exchange Interventions on the Labor Market in the Czech Republic
The result's identifiers
Result code in IS VaVaI
<a href="https://www.isvavai.cz/riv?ss=detail&h=RIV%2F68407700%3A21110%2F21%3A00352758" target="_blank" >RIV/68407700:21110/21:00352758 - isvavai.cz</a>
Result on the web
<a href="https://doi.org/10.9734/bpi/mpebm/v11/13846D" target="_blank" >https://doi.org/10.9734/bpi/mpebm/v11/13846D</a>
DOI - Digital Object Identifier
<a href="http://dx.doi.org/10.9734/bpi/mpebm/v11/13846D" target="_blank" >10.9734/bpi/mpebm/v11/13846D</a>
Alternative languages
Result language
angličtina
Original language name
Study on the Impact of CNB's Foreign Exchange Interventions on the Labor Market in the Czech Republic
Original language description
Despite of a generous system of unemployment benefits, the unemployment levels in the Czech Republic are being stuck substantially below the EU average. This study examines the impact of short-term foreign exchange intervention in 2013 and 2014 on the Czech labor market. We focus on the case of Czech Republic as small open economy with own currency where the exchange rate intervention is an efficient tool of monetary policy in times of extremly loose monetary conditions. We argue that foreign exchange interventions can effectively improve the labor market indicators in times of expected inflation when traditional monetary policy tools can not be applied. We show various effects of the initial foreign exchange intervention on selected segments of the Czech labor market. Our analysis has confirmed that the number of job vacancies increased by effect of foreign exchange intervention. But, obviously, increased demand for labor was not satisfied by the supply, and the unemployment rate, despite high rigidities, was well below the level of NAIRU. In fact, we have identified a negative effect of the CNB interventions on the number of employees and an accelerating growth of wage rate. We found that the impact of foreign exchange interventions on the labor market in the Czech Republic was similar to other economies with this experience, but the intensity was substantially different.
Czech name
—
Czech description
—
Classification
Type
C - Chapter in a specialist book
CEP classification
—
OECD FORD branch
50204 - Business and management
Result continuities
Project
—
Continuities
S - Specificky vyzkum na vysokych skolach
Others
Publication year
2021
Confidentiality
S - Úplné a pravdivé údaje o projektu nepodléhají ochraně podle zvláštních právních předpisů
Data specific for result type
Book/collection name
Modern Perspectives in Economics, Business and Management Vol. 11
ISBN
978-93-5547-108-6
Number of pages of the result
18
Pages from-to
—
Number of pages of the book
101
Publisher name
Book Publisher International
Place of publication
—
UT code for WoS chapter
—