In the paper we investigate, which shocks drive inflation in small open economies. We proceed in two steps. First, we use the SVAR approach to identify the global shocks. In the second step we regress the disaggregated price indices for selected European economies - the Czech Republic, Poland...

Considering the wide range of CPI applications in the economy, the accuracy of estimating changes in an average price of a consumer basket of goods attracts the attention of many economists. How the index of consumer prices is calculated is not, as it might seem, a merely statistical problem....

The experience of the last decades revealed the weakening of the relationship between inflation and a domestic output gap in many small open economies. However we may expect that there is still a substantial share of inflation basket which is sensitive to domestic economic activity, in...

Inflation perceived by consumers may differ from official statistics due to different baskets of goods and services both variables capture and by consumer loss aversion to price increases. Those effects, suggested by the Prospect Theory, are confirmed in many empirical studies, showing that...

Inflation perceived by consumers may differ from official statistics particularly due to different baskets of goods and services lay people and statisticians consider and by consumer loss aversion to price increases. Such effects, as suggested by the Prospect Theory, are confirmed in many...

This paper examines to what extent public information provided by the central bank affects the forecasts formulated by professional forecasters. We investigate empirically whether disclosing GDP and inflation forecasts by Narodowy Bank Polski (the central bank of Poland) reduces the disagreement...

We estimate forward-looking Taylor rules on data from macroeconomic forecasts of three central banks (Bank of England, National Bank of Poland and Swiss National Bank) in order to determine the extent to which these banks are forward looking in their monetary policy decisions. We find that all...

This paper provides the analysis of individual reactions functions of Polish Monetary Policy Council members in the years 2004-2005. In the period under study the Polish central bank used the bias in the monetary policy as an indicator of future interest rate movements and a change of bias...