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 article attempts to answer a few open questions related to price convergence in the Czech Republic and in other Central and Eastern European Countries toward prices in the European Union. The authors address the following issues: First, what, from the theoretical viewpoint, should the...

The article contributes to the theory of convergence in the price level and relative prices. The authors present a model integrating the Balassa-Samuelson model of real equilibrium exchange rate with a model of capital accumulation and with the demand side of the economy. They also show how the...

This paper aims at estimating the exchange rate pass-through (ERPT) for the Czech Republic. The existing empirical literature does not come to a consensus about the degree of pass-through to Czech inflation. Since there is no unique approach regarding how to measure ERPT, the author uses 11...

This paper begins with a description of simple select models of inflation and their ability to fit the data. The paper in turn measures the stability of particular parsimonious models. One-step forecast tests are applied, which establish the instability of the money demand model compared with...

There are three possible price movements in a market economy: stability, inflation, and deflation. Inflation and deflation are defined in this article as changes in the purchasing power of money caused by the money creation. Inflation and deflation have many asymmetric, and even some symmetric,...

The Czech Economic Association, in co-operation with the Czech National Bank, organised a public seminar on ?The State of the Phillips Curve,? which featured a lecture by Professor Laurence Ball, in Prague in April 2001. Professor Ball, a professor of economics at John Hopkins University, began...