Each monetary strategy with its targeting has its strengths and disadvantages. However, exchange rate targeting can be very useful especially at the beginning of transition process as it helps to stabilise inflation. We try to evaluate effectiveness of exchange rate targeting in the Slovak...

The empirical evidence upon the macroeconomic performances of the independent central banks do not always have been successfully. In some cases, the consistency of the indices based on the interpretation of central banks statues used for measuring the degree of central bank independence is...

Central bank independence has become over time one of the key concepts in modern theory and policy. Most economists agree that central bank independence is desirable because it helps achieving and maintaining the long -term goal of price stability. Although one might think about alternative...

We examine the effects of fiscal shocks on the performance of alternative monetary policy rules in a small dynamic general equilibrium framework. We explicitly consider the interaction between fiscal and monetary policy rules which may be present in the real world. We use a simple specification...

A HIGHLY IMPROVED VERSION OF THIS PAPER CAN BE FOUND AT http://english.mnb.hu/Kiadvanyok/mnben_mnbfuzetek/mnben_elozo/mnben_WP_2010_8 This paper provides a comprehensive analysis of the relative performance of inflation targeting, price level targeting, and hybrid targeting of them in a simple...

The article focuses on the development and performance of inflation targeting in the Czech Republic. It is shown that the particulars of the Czech inflation-targeting regime developed from a rather specific setting toward a framework based on international best practices. Its performance is...

There is a widespread agreement among central bankers around the world that the stability of the national currency should be entrusted to independent central banks. There are two arguments supporting this idea: 1. to achieve macroeconomic stability, a low and stable inflation is required, an...