Mahadeva, Lavan; Smidkova, Katerina - EconWPA - 2004
In December 1997, the Czech Republic became the first transitional economy to adopt an inflation-targeting (IT …) framework. This paper addresses two important topics: optimal inflation-targeting horizon and optimal speed of disinflation. A … conclusion is that the optimal targeting horizon is probably less than a year. Secondly, postponing the initial disinflation does …