The persistence of moderate inflation in the czech republic and the czk crisis of may 1997

1999 ◽  
Vol 8 (4) ◽  
Author(s):  
Josef C. Brada ◽  
Ali M. Kutan
Keyword(s):  
Exchange Rate ◽  
Czech Republic ◽  
Exchange Rate Policy ◽  
Nominal Exchange Rate ◽  
Fiscal Policies ◽  
Foreign Reserves ◽  
Macroeconomic Policies ◽  
The Czech Republic ◽  
Speculative Attack ◽  
Rate Policy

The paper deals with the exchange rate policy being implemented in combination with the mix of monetary and fiscal measures prior to the speculative attack on the CZK in 1997. The fixed nominal exchange rate may have been retained for too long and the monetary and fiscal policies were inappropriate. It explains the relation between Czech inflation, exchange rate and macroeconomic policies until the crisis of May 1997. <P>While the Czech Republic weathered its currency crisis much better than did most other emerging economies, with the worst damage being a USD 2 billion loss of foreign reserves, the crisis failed to resolve all of the fundamental problems. It gives also some explanations for the persistence of inflation at a level around 10 % until mid-1998.

Development of foreign trade and balance of payments in the czech republic, hungary and poland

1998 ◽  
Vol 7 (2) ◽  
Author(s):  
Vladimír Tomšík
Keyword(s):  
Exchange Rate ◽  
Czech Republic ◽  
Foreign Trade ◽  
Central Europe ◽  
Exchange Rate Policy ◽  
Balance Of Payments ◽  
The Czech Republic ◽  
Economic Changes ◽  
National Currencies ◽  
Rate Policy

The objective of this paper is to analyse one of the greatest problems in the process of transformation of these three economies in the years 1990-1996 - foreign trade development. Following political changes in the countries of Eastern and Central Europe, economic changes had to be implemented that also implied changes in foreign trade. These crucial changes include abolition of foreign trade monopoly and its liberalisation, introduction of stepwise convertibility of national currencies (for transactions of balance of payments on the current account at first), changes in exchange rate policy, price liberalisation and territorial reorientation of foreign trade. All these changes were reflected in foreign trade development in all three countries compared.

Emerging Markets Central Banks Exchange Rate Policy

2011 ◽  
pp. 21-34 ◽  
Author(s):  
S. Andryushin ◽  
V. Kuznetsova
Keyword(s):  
Exchange Rate ◽  
Emerging Markets ◽  
Exchange Rate Regime ◽  
Central Banks ◽  
Exchange Rate Policy ◽  
Point Of View ◽  
Nominal Exchange Rate ◽  
Safeguard Measures ◽  
Rate Policy ◽  
The Exchange Rate

The article analyzes the emerging markets central banks exchange rate policy, while they choose the exchange rate regime in conditions of financial globalization. The authors present the new IMF exchange rate regimes taxonomy which separates them using historical data about nominal exchange rate developments. They identify some factors which affect the exchange rate regime option from the macroeconomic point of view. The article reviews some national markets safeguard measures from external shocks generated by international capital inflow or outflow.

scholarly journals The Connection between the Exchange Rate and the Balance of Payments Accounts in the Czech Republic: An Econometric Approach

2017 ◽  
Vol 8 (1) ◽  
pp. 58-71
Author(s):  
Tomáš Urbanovský
Keyword(s):  
Exchange Rate ◽  
Czech Republic ◽  
Granger Causality ◽  
Current Account ◽  
Balance Of Payments ◽  
Nominal Exchange Rate ◽  
Current Account Balance ◽  
The Czech Republic ◽  
Financial Account ◽  
The Current Account

Relationships between the nominal exchange rate, the current account and the financial account of the balance of payments in the Czech Republic are investigated in this presented paper. The implemented cointegration analysis and vector error correction model suggest one pair of Granger causality. It has been discovered that change in the current account balance Granger-causes a change in financial account balance. This relationship has the nature of two-way Granger causality, which means that a reversed relationship holds as well. Other relationships implying Granger causality were not found. Error terms were significant only in regressions with both accounts as dependent variables, which imply that only these variables return to their long-term equilibria. Because an increase in financial account surplus leads to a decrease in current account surplus (or deepening the current account deficit), excessive liberalization of the Czech financial system can lead to a large capital inflow, jeopardizes current account sustainability and results in a currency crisis in the Czech economy.

scholarly journals Pakistan's Exchange Rate Policy: An Econometric Investigation

1992 ◽  
Vol 31 (1) ◽  
pp. 49-74 ◽  
Author(s):  
Mohammad Ahmed
Keyword(s):  
Exchange Rate ◽  
Error Correction ◽  
Exchange Rate Policy ◽  
Nominal Exchange Rate ◽  
Policy Intervention ◽  
Policy Rule ◽  
Correction Model ◽  
Inflation Differential ◽  
Monetary Authorities ◽  
Rate Policy

This paper examines empirical determinants of the Pakistani rupee exchange rate since the advent of the managed float in 1982. The behaviour of the nominal exchange rate results from policy intervention carried out by the monetary authorities. Various testable hypotheses are developed in order to discern the factor(s) which can be the determinants of the nominal rupee exchange rate. In the shon run, authorities follow a contingent policy rule with respect to movements of the U. S. dollar against the SDR. Based on vector autoregression techniques, the error correction model is employed to check the consistency of the shon-run adjusunent process, given the authorities' longrun target rupee value. The 'revealed' policy is to panly offset the inflation differential between Pakistan and its major trading parUlers. Under plausible conditions, the burden of adjusunent and recessionary conditions are likely to occur in the Pakistani expon sector.

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