The sudden collapse of oil prices poses a challenge to inflation targeting central banks in oil exporting economies. This paper illustrates that challenge and conducts a quantitative assessment of the impact of permanent changes in oil prices in a small and open economy, in which oil represents...

The goal of the paper is to define the issue of central banking in the rule of law context in the Czech Republic. The paper deals both with the legislative framework during the creation of Czechoslovak sovereign monetary policy after the year 1918 and legislative framework of modern central...

On the 5th of July, 2006 professor Frantisek Vencovský, the member of the Department of Monetary Theory and Policy, died. He was one of the most significant contemporary theoreticians and historians in the field of the monetary theory and policy. Prof. Vencovský became a well known specialist...

Milton Friedman, American Nobel price winner for Economics, was one of the most important economists in the 20th century. He contributed to the development of macroeconomic theory as well as to the new concept of monetary policy. In the area of economic theory two of main Friedman´s...

The paper deals with G. Rudebusch’s paper Federal Reserve Interest Rate Targeting, Rational Expectations and the Term Structure published in Journal of Monetary Economics in 1995. I define main resources of the study, discuss the most important parts of Rudebusch’s paper and present key...

On 7th of November 2013 the Board of the Czech National Bank decided to start using the exchange rate CZK/EUR as an additional instrument for easing the monetary conditions in order to avoid the long-term undershooting of the inflation target. The aim of this paper is to contribute to the...

The aim of this paper is to analyze the structure of the current financial system, including money circulation in it, and defi ne its infl uence on business cycles. The paper examines causes of disturbances in money circulation which lead to shallow or even deep economic crises. The role of...

The latest fi nancial crisis, among other consequences, has led to signifi cant reductions in bank lending. Because cashless bank loans granted to non-bank clients are the dominant way of issue of money into the economy, reducing of them infl uenced also defl ationary pressures. Central banks...

Central banks of major advanced economies have already started their sixth year of the greatest ever experiment in monetary policy at place. First, special measures were taken to prevent collapse of financial intermediation. At the same time main policy rates were cut down to historical lows...

The paper deals with interest rate volatility interpretation in the dealer´s model of optimal interest margin. It defines main sources of interest rate volatility and studies how specific source of volatility influences optimal interest margin. Special attention is focused on unexpected shock...