IMF Working Papers

Czech Magic: Implementing Inflation-Forecast Targeting at the CNB

By Kevin Clinton, Tibor Hlédik, Tomás Holub, Douglas Laxton, Hou Wang

January 30, 2017

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Kevin Clinton, Tibor Hlédik, Tomás Holub, Douglas Laxton, and Hou Wang. Czech Magic: Implementing Inflation-Forecast Targeting at the CNB, (USA: International Monetary Fund, 2017) accessed December 24, 2024

Disclaimer: IMF Working Papers describe research in progress by the author(s) and are published to elicit comments and to encourage debate. The views expressed in IMF Working Papers are those of the author(s) and do not necessarily represent the views of the IMF, its Executive Board, or IMF management.

Summary

This paper describes the CNB’s experience implementing an inflation-forecast targeting (IFT) regime, and the building of a system for providing the economic information that policymakers need to implement IFT. The CNB’s experience has been very successful in establishing confidence in monetary policy in the Czech Republic and should provide useful guidance for other central banks that are considering adopting an IFT regime.

Subject: Banking, Central bank policy rate, Exchange rates, Financial services, Foreign exchange, Inflation, Inflation targeting, Monetary policy, Prices, Short term interest rates

Keywords: Central bank policy rate, Exchange rates, Financial market, Global, IFT central bank, IFT monetary policy framework, Inflation, Inflation Targeting, Interest rate path, Market interest rate outlook, Monetary Policy, Monetary policy model, Nominal interest rate, Optimal Control, Output gap, Policy interest rate decision, Rate of inflation, Reaction function, Short term interest rates, Transmission mechanism, WP

Publication Details

  • Pages:

    56

  • Volume:

    ---

  • DOI:

    ---

  • Issue:

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  • Series:

    Working Paper No. 2017/021

  • Stock No:

    WPIEA2017021

  • ISBN:

    9781475572971

  • ISSN:

    1018-5941