In small open economies, external factors exert a strong influence on the autonomy and efficiency of domestic monetary policies. For the Czech National Bank, no exchange rate regime can guarantee a lasting degree of policy autonomy. Within the present CNB's strategy of direct inflation...

Accession countries are bound by EU rules to enter the eurozone after they have fulfilled the Maastricht criteria. Yet for many years, the eurozone will not constitute an optimum currency area for the new members. There are additional risks connected with low relative economic levels - as well...

If the analyses of the transmission mechanisms are not fundamentally wrong, it follows that Czech Republic shares a common feature typical for EU countries: the short-term non-neutrality of money with respect to real output. Money matters , money affects real output as well as prices. There can...