Publication detail

Foreign Exchange Interventions Under Inflation Targeting: The Czech Experience

Author(s): doc. PhDr. Adam Geršl Ph.D.,
doc. Mgr. Tomáš Holub Ph.D.,
Type: Articles in journals with impact factor
Year: 2006
Number: 0
ISSN / ISBN: 1074-3529
Published in: Contemporary Economic Policy
Publishing place:
Keywords: Exchange rate, managed floating, foreign exchange interventions, inflation targeting
JEL codes: E42, E44, E52, E58, E65, F31
Suggested Citation:
Abstract: This paper discusses the role of foreign exchange interventions in the inflation-targeting regime, focusing on the Czech experience since 1998. We find some evidence that the interventions had a statistically significant, but short lived and economically not very important, impact on the koruna's exchange rate and its volatility. We also discuss consistency of the interventions with the inflation targeting framework. All the Czech intervention episodes are judged to be consistent with the inflation targets and output developments, but for two episodes not fully consistent regarding the mix of monetary conditions.

Partners

Deloitte

Sponsors

CRIF
McKinsey
Patria Finance