This policy paper deals with the main strategic issues for monetary policy in new EU member states before their euro adoption. These are typically rooted in the challenge of fulfilling concurrently of the Maastricht inflation and exchange rate criteria. In this paper we first put forward that...

This article discusses the effect of foreign direct investment on the corporate sector in the Czech Republic. The analysis uses subaggregated corporate data from a unique Deutsche Bundesbank database containing an almost complete sample of German enterprises that invested in the Czech Republic...

This paper provides some stylized facts of inflation target fulfillment in the Czech Republic in 1998–2007. In the first part, it discusses briefly the general macroeconomic conditions of the Czech inflation targeting regime, including an identification of the main shocks affecting its...

This paper is primarily concerned with assessing the bias of the CNB’s predictions in relation to undershooting of the inflation target. We conclude that the inflation prediction error has decreased over time. We further point out that GDP growth and interest rates were, respectively, above...