Unconventional Monetary Policy of the Czech National Bank

Ilona Skibińska-Fabrowska

Abstract


In the face of the global financial crisis, many central banks applied non-standard monetary policy instruments. They were activated after lowering short-term interest rates to a level close to zero and after the use of classical tools was exhausted. In the conditions of negative GDP growth, low inflation and zero interest rates, the Czech National Bank decided to use the exchange rate as a non-standard instrument of monetary policy. The activities carried out stimulated economic growth and had a relatively small impact on the level of inflation. The Czech experience allows determining the conditions in which it is possible to apply the exchange rate as an instrument of monetary policy and the expected effects of its introduction.


Keywords


central bank, monetary policy, unconventional monetary measures, exchange rate, Czech National Bank

Full Text:

PDF

References


Alichi A., Benes J., Felman J., Feng I., Freedman Ch., Laxton D., Tanner E., Vavra D., Wang H., Frontiers of Monetary Policymaking: Adding the Exchange Rate as a Tool to Combat Deflationary Risk in the Czech Republic, IMF Working Paper WP/15/74, Waszyngton 2015.

Audzei V., Brazdik F., Monetary Policy and Exchange Rate Dynamics: The Exchange Rate as a Shock Absorber, Czech Journal of Economics and Finance, nr 5 2015, s. 391 – 410.

Bruha J., Tonner J., An Exchange Rate Floor as an Instrument of Monetary Policy: An Ex-post Assessment of the Czech Experience, CNB Working Paper Series nr 4 z 2017, Praga 2017.

Brüna K., Durčáková J., Banking System Liquidity Absorption and Monetary Base Backing in the Contex of Exchange Rate Policy in the Czech Republic, Poland and Hungary, Post-Communist Economies nr 2 (24) 2012, Praga 2012.

The CNB Balance Sheet, http://www.cnb.cz/en/about_cnb/performance/ten_day_balance_sheet/cnb_bilance_eng.html, dostęp dnia 20.02.2018.

Hledik T., Holub P., Král P., The Czech National Bank’s Role Since the Global Crisis, Public Finance Quarterly 1/2016, s. 65 – 93.

Ignasiak-Szulc A., Kosiedowski W., Gospodarka państw Europy Środkowo-Wschodniej w okresie kryzysowych turbulencji, Zeszyty Naukowe UEK nr 12 z 2016, s. 21 – 39.

Inflation targeting in the Czech Republic, https://www.cnb.cz/en/monetary_policy/inflation_targeting.html, dostęp dnia 02.02.2018.

Kowalewski P., Czeska korona odzyskuje skrzydła, https://www.obserwatorfinansowy.pl/forma/rotator/czeska-korona-odzyskala-skrzydla/, dostęp dnia 02.01.2018.

Lizal L., Schwarz J., Foreign Exchange Interventions as an (Un)Conventional Monetary Policy Tool, https://www.bis.org/publ/bppdf/bispap73i.pdf, dostęp dnia 02.01.2018.

Malovana S., Foreign Exchange Interventions as the Zero Lower Bound in the Czech Economy: A DSGE Approach, Institute of Economic Studies Working Paper 13/2015, Praga 2015.

Opatrny M., Quantifying the Effects of the CNB’s Exchange Rate Commitment: A Synthetic Control Method Approach, Czech Journal of Economics and Finance, nr 6 2017, s. 539 – 561.

Pielach M., Mamy czas na normalizację polityki pieniężnej, https://www.obserwatorfinansowy.pl/tematyka/makroekonomia/mamy-czas-na-normalizacje-polityki-pienieznej/, dostęp dni 02.01.2018.

Przybylska-Kapuścińska W., Polityka pieniężna nowych państw członkowskich Unii Europejskiej. Od transformacji przez inflację do integracji, Wolters Kluwer Polska, Warszawa, 2007.

Skibińska-Fabrowska I., Banki centralne wobec kryzysu. Niestandardowe instrumenty polityki pieniężnej, CeDeWu, Warszawa 2017.

Skořepa M., Tomšik V., Vlček J., Impact of the CNB’s Exchange Rate Commitment: Pass-Through to Inflation, BIS Paper nr 89 z 2016, s. 153 – 167.

Winfrey M., Laca P., Short-term Fluctuations of Koruna Exchange Rate After Exit Will Not Trouble us Very Much, https://www.cnb.cz/en/public/media_service/interviews/media_2017/cl_17_170302_rusnok_bloomberg.html, dostęp dnia 02.01.2018.




DOI: http://dx.doi.org/10.17951/h.2018.52.4.83-91
Date of publication: 2019-02-19 12:20:47
Date of submission: 2018-06-09 08:46:24


Statistics


Total abstract view - 1486
Downloads (from 2020-06-17) - PDF - 0

Indicators



Refbacks

  • There are currently no refbacks.


Copyright (c) 2019 ilona ewa skibińska-fabrowska

Creative Commons License
This work is licensed under a Creative Commons Attribution 4.0 International License.