Behavior of the Czech small open economy in the conditions of occasionally binding constraints

Kód výsledku v 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>

Výsledek na webu

<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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Jazyk výsledku

angličtina

Název v původním jazyce

Behavior of the Czech small open economy in the conditions of occasionally binding constraints

Popis výsledku v původním jazyce

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.

Název v anglickém jazyce

Behavior of the Czech small open economy in the conditions of occasionally binding constraints

Popis výsledku anglicky

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.

Druh

D - Stať ve sborníku

CEP obor

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OECD FORD obor

50202 - Applied Economics, Econometrics

Projekt

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Návaznosti

S - Specificky vyzkum na vysokych skolach

Rok uplatnění

2018

Kód důvěrnosti údajů

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

Název statě ve sborníku

36th International Conference Mathematical Methods in Economics Conference Proceedings

ISBN

9788073783723

ISSN

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e-ISSN

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Počet stran výsledku

6

Strana od-do

612-617

Název nakladatele

Faculty of Management, University of Economics

Místo vydání

Prague

Místo konání akce

Prague

Datum konání akce

1. 1. 2018

Typ akce podle státní příslušnosti

EUR - Evropská akce

Kód UT WoS článku

000507455300106