Suchergebnisse

The paper evaluates some policy dilemmas the Czech monetary policy will face on the way towards adopting common currency. The assessment of the inflation criterion concentrates on the potential clash with so called real convergence showing that alleged negative influences on the catching-up process seem to be exaggerated. The reasons leading to some scepticism about the ERM-II arrangement are further explained with distinction placed on eligibility & regime selection motives when applying for the ERM-II membership. Finally, the pros & cons of inflation targeting are discussed from the perspective of promoting the fulfilment of Maastricht requirements. Attention is paid to the issue of optimal exit form inflation targeting having in mind the priority of entering Eurozone with a proper conversion rate. Tables, Graphs, References. Adapted from the source document.

This paper provides a theoretical framework for a thesis that the transition to the Inflation targeting regime, either explicit or implicit, may be one of the causes of the long-term latent accumulations of the financial and structural imbalances, materializing much later and with more dire consequences. Due to the long-term systematic manipulation of interest rates, within the operational framework of the stabilization of consumer prices and the output gap, as well as of anti-deflationary fundamentalism, the economy can transform itself into a kind of black box, gradually and over time causing an escape of credit and monetary aggregates. Money supply tends to be more endogenous and elastic, changing the causality within a link between the money supply and its effective economic materialization, both in production processes of the real economy as well as in banking and financial services. Thereby, the economy lacks a needful defensive mechanism that would pull the overheating economy back through more exogenous and inelastic money supply, automatically adjusting market interest rates. In the empirical part we employed VECM tests to show that the money supply was exogenous before the implicit adoption of inflation targeting in the USA (1985), but endogenous after it. Adapted from the source document.

The paper consists of four parts each of them devoted to a practical aspect of inflation targeting as conducted by the Czech National Bank. The first part outlines the reasons that led to the adoption of this monetary regime & summarises other advantages for effective & transparent decision-making. The second part addresses the issue of missing inflation targets. It is argued that simple confrontation of targets with actual behaviour of inflation may give a distorted view about the actual performance of monetary policy. The third part discusses a subtle methodological controversy about the difference between so-called escape clauses on the one hand & net inflation on the other. In the last section the author presents his critical view about the role of unconditional forecast in its capacity to indicate future interest rate decisions & to provide a realistic description of transmission mechanism in a small open economy. 5 Figures, 26 References. Adapted from the source document.

The relatively long term period of stability before the present crises called even "Great Moderation" or "Golden Age of Central Banking" indicated that the inflation targeting was a success story. As of 2008 a lot has changed and the debate over "Leaning against the wind or Clean afterwards?" is being revisited among central bankers and academicians. At the same time the question "Does money matter in monetary policy" is on the table again. This paper focuses on the discussion of these issues; moreover, some new challenges that emerged in previous three years are discussed. The crisis has highlighted an urgent need to incorporate banks and financial frictions into monetary policy modelling framework -- therefore some new findings on this field of research are outlined. An important lesson from the crises is that price stability is not a sufficient precondition for financial stability, therefore an operational framework for financial stability is being searched -- this is subject of the final part of this paper. Adapted from the source document.

The paper herein presents a summary of research targeting the attitudes of mayors of Czech municipalities towards the financing of municipalities and the submitted legislative determination of taxes. Data reflect expert interviews with a representative sample of nine municipalities in Central Bohemian region. The research was originally incorporated into the doctoral thesis by Ilona Kruntoradova accomplished at the Institute of Political Studies at the Faculty of Social Sciences, Charles University in Prague; it is contextualized in the paper with political debates about the new rules concerning the funding of municipalities. Such rules create divisions among the municipalities as well as the parties within the Necas coalition government. The main research findings underline the prevailing lack of funds facilitating the development of small municipalities, mediation of the interests of municipalities through personal contacts rather than special interest associations, and deeper divisions between small municipalities and large cities. The research herein should primarily serve as a pre-research for larger inquiries involving a broader sample of municipalities throughout the Czech Republic. Adapted from the source document.