Publication detail

Should Inflation Measures Used by Central Banks Incorporate House Prices? The Czech Approach

Author(s): doc. PhDr. Tomáš Havránek Ph.D., Mojmír Hampl
Type: IES Working Papers
Year: 2017
Number: 12
ISSN / ISBN:
Published in: IES Working Papers 12/2017
Publishing place: Prague
Keywords: Consumer price index, financial stability, house prices, macroprudential policy, monetary policy, owner-occupied housing
JEL codes: E31, E44, E50, R30
Suggested Citation: Hampl M., Havranek T. (2017). ”Should Inflation Measures Used by Central Banks Incorporate House Prices? The Czech Approach” IES Working Paper 12/2017. IES FSV. Charles University
Abstract: In this paper we describe the Czech National Bank’s approach to incorporating macroprudential considerations into monetary policy decision making: the use of a broader inflation measure that gives substantial weight to house prices and is considered along with headline CPI inflation. We argue that, in terms of theory, the broader inflation gauge is at least as suitable for measuring the value of money as headline CPI inflation is, but we also acknowledge practical problems that arise from the use of the broader index.
Downloadable: wp_2017_12_hampl_havranek

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