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Volume 58, Issue 9 -10


Causes of Deviations from the CNB’s Inflation Targets: An Empirical Analysis

Holub, Tomáš

Year: 2008   Volume: 58   Issue: 9 -10   Pages: 425-433

Abstract: This paper provides an empirical analysis of the factors that caused deviations from the CNB’s inflation targets during the first ten years of inflation targeting in the Czech Republic. While in the short term, shocks to agricultural producer prices represent the most important factor, exchange rate shocks are clearly the most important medium-term factor. At the same time, it could not be proved that monetary policy created any major shocks contributing to the non-fulfillment of inflation targets, although some role thereof cannot be excluded either.

JEL classification: E31, E52, E58

Keywords: inflation targeting, VAR model, exchange rate


RePEc: http://ideas.repec.org/a/fau/fauart/v58y2008i9-10p425-433.html

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