Estimating Natural Rate of Interest and Equilibrium Exchange Rate: A Case of the Czech Republic-Reference-Cited by-同舟云学术

Estimating Natural Rate of Interest and Equilibrium Exchange Rate: A Case of the Czech Republic

Published:2019-12-01 Issue:4 Volume:19 Page:231-248
ISSN:1804-1663
Container-title:Review of Economic Perspectives
language:en
Short-container-title:

Author:

Pikhart Zdeněk¹,Froňková Pavla²

Affiliation:

1. University of Economics in Prague , Faculty of Finance and Accounting , W. Churchill Sq.1938/4, 130 67 Prague 3 and also Ministry of Finance of the Czech Republic , Department of Economic policy, Macroeconomic Analysis Unit , Letenská 15, 118 10 Prague 1, Czech Republic

2. Ministry of Finance of the Czech Republic , Department of Economic policy, Macroeconomic Analysis Unit , Letenská 15, 118 10 Prague 1, Czech Republic

Abstract

Abstract Article deals with estimating real natural interest rate and exchange rate to construct monetary conditions index suitable for the Czech open economy. Despite unobservable characteristics of underlying interest rates and exchange rate, the importance of reference indicators for monetary policy is crucial. Proposed monetary condition index in gap form examines monetary impulse on economic and credit cycle in inflation targeting model.

Publisher

Walter de Gruyter GmbH

Subject

General Economics, Econometrics and Finance

Link

https://www.sciendo.com/pdf/10.2478/revecp-2019-0013

Reference26 articles.

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