Makroekonomický model produktu neakcelerujícího inflaci

In this paper the authors try to measure production gap in the Czech Republic and, consequently, non-accelerating inflation product (NAIP) as an approximation of potential product. NAIP is treated as an unobservable variable, to which an augmented Phillips curve plays a key role in its identification. The analysis is conducted on quarterly economic data provided by the Czech Statistical Office. An iterated extended Kalman filter is employed as an estimation method. The results indicate that the supply side of the Czech economy is more flexible than has been suggested in previous literature on the topic.