Challenges to Monetary Policy in the Czech Republic—An Integrated Monetary and Fiscal Analysis
IMF Working Papers, March 1, 2008
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- Challenges to Monetary Policy in the Czech Republic—An Integrated Monetary and Fiscal Analysis
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Bibliographic details
- Authors: Sònia Muñoz, Céline Allard
- Published: March 1, 2008
- Series: IMF Working Papers
- DOI: https://doi.org/10.5089/9781451869347.001
Summary and objective
- This paper uses the Global Integrated Monetary and Fiscal Model (GIMF), a New Keynesian open-economy general equilibrium model suitable for an integrated evaluation of monetary and fiscal policies, to analyze monetary policy challenges facing the Czech Republic.
- In the context of the recent rising inflation pressures, the paper analyzes how the authorities' fiscal reform package and the planned reduction in the inflation target in 2010 would weigh on the conduct of monetary policy.
Methodology
- Model used: Global Integrated Monetary and Fiscal Model (GIMF), a New Keynesian open-economy general equilibrium model.
- Analytical focus: integrated evaluation of monetary and fiscal policies in the Czech Republic amid rising inflation pressures and a planned reduction in the inflation target in 2010.
Key themes and topics
- Fiscal policy
- Inflation
- Inflation targeting
- Output gap
- Value-added tax
Keywords
- inflation target
- monetary policy
- monetary policy reaction
- WP
IMF Working Papers — Challenges to Monetary Policy in the Czech Republic—An Integrated Monetary and Fiscal Analysis