During the course of 1999 Q4, the price trend changed. The long-term tendency toward a slowdown in CPI inflation was replaced by a slight pickup. Year-on-year CPI inflation was 2.5% in December ?99. The net inflation index stood at 1.5%, i.e., 2.5 percentage points below the lower boundary of...

Q1 2000 saw moderate inflation, signs of economic recovery, a worsening of the trade balance, and the continuing appreciation of the koruna?s exchange rate against the euro. Inflation factors acted markedly differently than in 1998 and H1 1999, when the price trend had been affected by a...

The moderate increase in inflation during Q2 2000 resulted from both an increase in net inflation and a hike in several regulated prices. Rising energy and raw material prices influenced the development of industrial PPI but their impact on CPI (except for fuel prices) continued to be limited,...

The decline in year-on-year inflation was halted in Q3 1999. After a considerable drop in the previous period, inflation gradually stabilised at its lowest level since 1991, the beginning of the country?s economic transformation. Net inflation continued to be determined largely by food prices....

This paper describes segregated balance accounts (SBAs), a concept for a new type of account that could provide increased competition for deposits, reduce system-wide balance sheet costs, and improve the transmission of monetary policy by facilitating greater pass-through of interest on excess...

While many analyses of monetary policy consider only a target for a short-term nominal interest rate, other dimensions of policy have recently been of greater importance: changes in the supply of bank reserves, changes in the assets acquired by central banks, and changes in the interest rate...

What role does stock investment play in the transmission of monetary policy to the real economy? We study this question using a New Keynesian model with heterogeneous households. Following a monetary tightening, stock market participants rebalance their investments away from stocks, in line with...

What are the implications of targeting different measures of inflation? We extend a basic theoretical framework of optimal monetary policy under inflation targeting to include several components of CPI inflation ratio, and analyze the implications of using different measures of inflation as...

The analysis of this paper demonstrates that when the Phillips curve has forward-looking components, a goal for average inflation - i.e. targeting a j-period average of one-period inflation rates - will cause inflation expectations to change in a way that improves the short-run trade-off faced...

While knowing there is a financial distress "when you see it" might be true, it is not particularly helpful. Indeed, central banks have an interest in understanding more systematically how their communication affects the markets, not least in order to avoid unnecessary volatility; the markets...