The paper analyses a relationship between monetary aggregate M2 and inflation in a small open economy. The relationship … between monetary expansion and inflation as well as a dynamic of income velocity of money framework in a small open economy … money and tradables inflation in the case of the Czech small open economy is not found. The conclusions presented in the …

New concepts have been presented in modelling of inflation dynamics recently, among others the New Keynesian Phillips … be considered as effective in conditions of the Czech Republic; this model does not describe the inflation process … sufficiently and it is not a suitable model for inflation prediction or for the choice of appropriate monetary (anti-inflation …

gap transformations of real M2 and real GDP series can be used for identification of inflation risks. The relatively high … correlation was found between gap form of M2 and rate of inflation. The relationship between gap form of GDP and rate of inflation …