This article deals with the choice of exchange rate regime in transition economies, accumulation of foreign exchange (FX) reserves in balance sheets of central banks and its consequences in overall excess banking system liquidity. The case of banking system liquidity surplus is analysed focusing...

This article deals with the relationship between market and client interest rates in the period of inflation stabilisation and banking system transformation in the Czech Republic in 1999-2006. It analyses the character of short-run and long-run equilibrium of the transmission of market interest...

In this study I describe the relationship between monetary policy and medium and long-term swap rates. I focus especially on explanation of the instability of the level and relations of swap and forward rates on the Czech swap market in the context of the Czech National Bank's (CNB) disinflation...

Effective monetary policy depends on the ability of central banks to stabilize fluctuations of overnight interest rates around their policy rate. The function of the stabilization mechanism involves balancing aggregate bank demand for reserves with the central bank’s supply of reserves in...