We study both theoretically and empirically the interdependence of lending decisions in different country branches of a multinational bank. First, we model a bank that delegates the management of its foreign unit to a local manager with non-transferable skills. The bank differs from other...

This paper offers the analysis ofCzech monetary policy effectiveness during 1993-1996, which was based on the monetarist theory reconunendations. Also, the reasons for inflation targeting policy irnplementation by the Czech National Bank (CNB) are reviewed. In order to accomplish these goals, we...