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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 are discussed in more details in the paper. Authors...
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At the beginning of 1996 the ČNB changed money supply management. The transition was from a monetary base regulation towards control of short-interest rate of inter banking market PRIBOR 1 week. While monetary regulation base mainly results in changes of the monetary supply, the transition...
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