Monetary policy, indebtedness and debt service costs

Kód výsledku v 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>

Výsledek na webu

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DOI - Digital Object Identifier

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Jazyk výsledku

angličtina

Název v původním jazyce

Monetary policy, indebtedness and debt service costs

Popis výsledku v původním jazyce

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.

Název v anglickém jazyce

Monetary policy, indebtedness and debt service costs

Popis výsledku anglicky

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.

Druh

D - Stať ve sborníku

CEP obor

AH - Ekonomie

OECD FORD obor

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Projekt

<a href="/cs/project/GA16-22540S" target="_blank" >GA16-22540S: "Jak ty mně, tak já tobě?" Obnovení fiskální a finanční stability bez ohrožení měnové stability</a><br>

Návaznosti

P - Projekt vyzkumu a vyvoje financovany z verejnych zdroju (s odkazem do CEP)

Rok uplatnění

2016

Kód důvěrnosti údajů

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

Název statě ve sborníku

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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Počet stran výsledku

5

Strana od-do

285-290

Název nakladatele

VŠB - Technical University of Ostrava

Místo vydání

Ostrava

Místo konání akce

Ostrava

Datum konání akce

5. 9. 2016

Typ akce podle státní příslušnosti

WRD - Celosvětová akce

Kód UT WoS článku

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