Understanding monetary policy in Central European countries using Taylor-type rules: the case of the Visegrad four

This paper assesses to what extent simple Taylor-type monetary policy rules provide a good description of interest rate setting behaviour in the Visegrad four countries. Six different models are analysed, chosen on the basis of possessing desirable theoretical features. The paper finds that exchange rates feature prominently in three of the four countries' policy rules and that the results are sensitive to the measure of inflation used.

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Year of publication:	2007-02-19
Authors:	Paez-Farrell, Juan
Published in:	Economics Bulletin. - AccessEcon, ISSN 1545-2921. - Vol. 5.2007, 3, p. 1-11
Publisher:	AccessEcon
Keywords:	Monetary policy Interest rules inflation exchange rates

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Extent:	application/pdf
Type of publication:	Article
Classification:	E5 - Monetary Policy, Central Banking and the Supply of Money and Credit ; E3 - Prices, Business Fluctuations, and Cycles
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10010629188