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Monetary Policy Transmission Mechanisms and Inflation in Slovakia

This paper presents the results of an empirical analysis into monetary policy transmission mechanisms and inflation in the Slovak Republic. The estimated vector autoregression (VAR) model suggests that inflation is determined by changes in foreign prices, the exchange rate, and wage costs, with a mo...

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Bibliographic Details
Main Author: Kuijs, Louis
Format: eBook
Language:English
Published: Washington, D.C. International Monetary Fund 2002
Series:IMF Working Papers
Subjects:
Interest Rates
Inflation
Finance
Dynamic Treatment Effect Models
Currency; Foreign Exchange
Financial Services
Real Interest Rates
Deflation
Diffusion Processes
Model Construction And Estimation
Time-series Models
International Financial Markets
Currency Markets
Price Level
Foreign Exchange
Financial Markets
Banks And Banking
Prices
Macroeconomics
Real Exchange Rates
Interest Rates: Determination, Term Structure, And Effects
Dynamic Quantile Regressions
Foreign Exchange Market
Exchange Rates
Monetary Policy
State Space Models
Finance: General
Slovak Republic
Online Access:
Collection: International Monetary Fund - Collection details see MPG.ReNa
Description
Summary:This paper presents the results of an empirical analysis into monetary policy transmission mechanisms and inflation in the Slovak Republic. The estimated vector autoregression (VAR) model suggests that inflation is determined by changes in foreign prices, the exchange rate, and wage costs, with a modest effect of aggregate demand, in line with theory for small, open economies. Monetary policy is shown to affect inflation via these channels. Changes in money supply seem to have a modest but rapid impact on prices. The measured effect of interest rate changes is modest and gradual, although it appears to have become more important in recent years
Physical Description:27 pages
ISBN:9781451850314

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