This paper contributes to a better understanding of how inflation targets are set. First, we gather evidence on how … inflation targets are set from official central bank and government publications and from a questionnaire of our own design …. Second, we estimate the determinants of the level of the inflation target in 19 inflation-targeting countries using …

inflation, GDP growth, interest rate and the exchange rate to those of the CNB, which are based on past forecasting errors. Our …

apply an inflation targeting regime. Two different empirical frameworks are used: (i) Generalized Method of Moments (GMM …

Since the introduction of inflation targeting in the Czech Republic in 1998, supply-side factors have had a strong … direct influence on CPI inflation on several occasions. This paper uses a small-scale dynamic rational expectations model … selected supply-side shocks and of shocks to the nominal exchange rate on wages and subsequently on inflation. In order to …