Is inflation persistence in the new EU Member States (NMS) comparable to that in the euro area countries? We argue that persistence may not be as different between the two country groups as one might expect. We confirm that one should work carefully with the usual estimation methods when...

The paper analyzes the impact of voucher privatization scheme on behavior of households and its consequences for macroeconomic policy. The stylized facts of the voucher privatization scheme are described for the Czech case. The consumption as well as portfolio decision of households during the...

The introduction of inflation targeting (IT) by the Czech National Bank in 1997 was an important event in history of IT since the Czech Republic was the first transitional country to adopt it. This study has been the first document describing consistently the Czech approach to IT. It reviews the...

Are there indications of the real exchange rate misalignment in the case of five pre-accession countries? Will in these countries stable real exchange rates, required by the two of Maastrich criteria, be in line with economic fundamentals in the pre-EMU period? In order to analyse these...

When currency turbulences hit the Czech crown in May 1997, the research presented in this paper had been nearly finished. It tried to contribute to the discussion of sustainability of external development of the Czech economy by comparing signals given by a set of indicators to signals implied...

The study has been written by the team of the CNB experts in order to provide evidence about the exchange-rate turbulence of koruna in 1997. First, it provides analysis of the root causes of the exchange rate turbulence in May 1997. Secondly, it takes an in-depth look at the attempts to solve...

In last decade, three important challenges – the introduction of new strategies for monetary policy, the observed differences in anatomy of financial crisis between developed and emerging economies, and the emergence of the EMU – gave rise to new focus of debate about transmission mechanism...

This paper analyses current policy choices facing the candidate countries for EU accession using newly developed econometric macromodels of Poland, Hungary, the Czech Republic, Slovenia and Estonia. The models allow for endogenous growth, and they have been incorporated into an existing global...