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....

Inflation volatility is clearly important for structural analysis, forecasting and policy purposes, yet it is often overlooked in the literature. This paper compares in ation volatility among advanced open economies with in ation targeting monetary policy frameworks. The results of the empirical...

This paper derives a general framework for collateral risk control determination in repurchase transactions or repos. The objective is to treat consistently heterogeneous collateral so that the collateral taker has a similar risk exposure whatever the collateral pledged. The framework measures...

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...

Two approaches are considered to incorporate judgment in DSGE models. First, Bayesian estimation indirectly imposes judgment via priors on model parameters, which are then mapped into a judgmental interest rate decision. Standard priors are shown to be associated with highly unrealistic...

In the framework of a new money market econometric model, we assess the degree of precision achieved by the European Central Bank ECB) in meeting its operational target for the short-term interest rate and the impact of the U.S. sub-prime credit crisis on the euro money market during the second...