The Czech National Bank's Role Since the Global Crisis

Kód výsledku v IS VaVaI

<a href="https://www.isvavai.cz/riv?ss=detail&h=RIV%2F00216208%3A11230%2F16%3A10327618" target="_blank" >RIV/00216208:11230/16:10327618 - isvavai.cz</a>

Výsledek na webu

<a href="https://www.asz.hu/storage/files/files/public-finance-quarterly-articles/2016/hledik_2016_1_a.pdf" target="_blank" >https://www.asz.hu/storage/files/files/public-finance-quarterly-articles/2016/hledik_2016_1_a.pdf</a>

DOI - Digital Object Identifier

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Jazyk výsledku

angličtina

Název v původním jazyce

The Czech National Bank's Role Since the Global Crisis

Popis výsledku v původním jazyce

The Czech economy entered the global crisis with no major imbalances. Importantly, it did not suffer from the FX mortgage problem, unlike its regional peers. This was mainly a reflection of its early disinflation process accomplished under the inflation targeting regime from 1998. As a result, the CNB could allow the exchange rate to operate freely as a shock absorber during the crisis. The sharp depreciation of the Czech koruna from mid-2008 until early-2009 helped to ease the overall monetary conditions significantly, together with sharp interest rates cuts from August 2008. As a result, the CNB did not hit the ZLB constraint and got by with standard monetary policy tools in the post-Lehman phase. In 2012-2013, however, the Czech economy slid into another recession driven by very weak domestic demand. The central bank cut the interest rates further and hit the "technically zero" level in November 2012. To achieve further monetary policy easing, the CNB used forward guidance on the nominal interest rates, and established an exchange rate commitment at CZK/EUR 27 one year later. This policy measure has averted the risk of deflation driven by insufficient demand, and has contributed to a notable recovery of the Czech economy.

Název v anglickém jazyce

The Czech National Bank's Role Since the Global Crisis

Popis výsledku anglicky

The Czech economy entered the global crisis with no major imbalances. Importantly, it did not suffer from the FX mortgage problem, unlike its regional peers. This was mainly a reflection of its early disinflation process accomplished under the inflation targeting regime from 1998. As a result, the CNB could allow the exchange rate to operate freely as a shock absorber during the crisis. The sharp depreciation of the Czech koruna from mid-2008 until early-2009 helped to ease the overall monetary conditions significantly, together with sharp interest rates cuts from August 2008. As a result, the CNB did not hit the ZLB constraint and got by with standard monetary policy tools in the post-Lehman phase. In 2012-2013, however, the Czech economy slid into another recession driven by very weak domestic demand. The central bank cut the interest rates further and hit the "technically zero" level in November 2012. To achieve further monetary policy easing, the CNB used forward guidance on the nominal interest rates, and established an exchange rate commitment at CZK/EUR 27 one year later. This policy measure has averted the risk of deflation driven by insufficient demand, and has contributed to a notable recovery of the Czech economy.

Druh

J_x - Nezařazeno - Článek v odborném periodiku (Jimp, Jsc a Jost)

CEP obor

AH - Ekonomie

OECD FORD obor

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Projekt

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Návaznosti

I - Institucionalni podpora na dlouhodoby koncepcni rozvoj vyzkumne organizace

Rok uplatnění

2016

Kód důvěrnosti údajů

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

Název periodika

Public Finance Quarterly

ISSN

0031-496X

e-ISSN

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Svazek periodika

61

Číslo periodika v rámci svazku

1

Stát vydavatele periodika

HU - Maďarsko

Počet stran výsledku

29

Strana od-do

65-93

Kód UT WoS článku

000382857400004

EID výsledku v databázi Scopus

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