Advanced search ?

Object

The Czech National Bank’s monetary policy since 2008 and its (un)intended consequences in the long run
Download

Title: The Czech National Bank’s monetary policy since 2008 and its (un)intended consequences in the long run

Creator:

Wawrosz, Petr ; Křížek, David

Description:

Argumenta Oeconomica, 2025, Nr 1 (54), s. 204-224

Abstrakt:

Aim: The article aims to show that the monetary policy of the Czech National Bank (CNB) between 2008 and 2021 was mainly expansionary, especially due to foreign exchange interviews realized by the bank from November 2013 to April 2017 to prevent CZK appreciation. The policy contributes to higher Czech inflation from the first half of 2022 to the first half of 2024. Methodology: The relationships between monetary aggregates (M1, M2 and M3 and the stock of CNB foreign exchange reserves) and between the reserves, money stock and inflation are statistically investigated. The article uses, among others, the Augmented Dickey-Fuller test and F-test of the ANOVA procedure. It also discusses how household consumption and government expenditure, mainly in the period since 2021, contributed to the Czech inflation. Results: The study revealed the strong dependence of the development of Czech monetary aggregates (both M1 and M2, and M3) on the development of the stock of the CNB’s foreign exchange reserves. It further proved, using the quantitative equation of money, that the growth of Czech money stock, although partly offset by the negative value of Czech money velocity growth rate, led to the increase in Czech inflation numbers. Originality/value: The article emphasizes that although monetary policy, including forecasts of eco-nomic development, focuses on a period that usually does not exceed two years from taking a specific monetary policy step (e.g. a decision by the central bank to increase or decrease rates) or from the publication of a forecast, i.e. the monetary policy horizon covers up to two years, especially if an expansionary monetary policy is carried out for a longer period. Thus, a central bank should evaluate such a policy, including the issue of how the growth of the value of monetary aggregates can influence inflation values behind the monetary policy horizon. The article further proved that money is neutral in the long run and money growth higher than the growth rate of real GDP must inevitably lead to an increase in inflation. Thus, the CNB expansionary monetary policy had some (un)intended consequences and the central bank faced in the period 2022-2024 higher inflation.

Publisher:

Publishing House of Wroclaw University of Economics and Business

Place of publication:

Wroclaw

Date:

2025

Resource Type:

artykuł

Resource Identifier:

doi:10.15611/aoe.2025.1.13 ; oai:dbc.wroc.pl:135117

Language:

eng

Relation:

Argumenta Oeconomica, 2025, Nr 1 (54)

Rights:

Pewne prawa zastrzeżone na rzecz Autorów i Wydawcy

Access Rights:

Dla wszystkich zgodnie z licencją

License:

CC BY-SA 4.0

Location:

Uniwersytet Ekonomiczny we Wrocławiu

Group publication title:

Argumenta Oeconomica

Subject and keywords:

foreign exchange intervention quantitative theory of money inflation monetary aggregates Czech National Bank Czech Republic Czechia

Object collections:

Last modified:

May 14, 2025

In our library since:

May 14, 2025

Number of object content hits:

420

All available object's versions:

https://dbc.wroc.pl/publication/174028

Show description in RDF format:

RDF

Show description in OAI-PMH format:

OAI-PMH

Edition name Date
The Czech National Bank’s monetary policy since 2008 and its (un)intended consequences in the long run May 14, 2025

Objects Similar
Devizové intervence České národní banky a jejich potenciální souvislost s českým exportem zboží a služeb mezi ČR, eurozónou a Polskem

Tomášková, Andrea Drelich-Skulska, Bogusława. Redakcja Sobocińska, Magdalena. Redakcja

2023
rozdział
20-th AMSE. Applications of Mathematics and Statistics in Economics. International Scientific Conference: Szklarska Poręba, 30 August- 3 September 2017. Conference Proceedings Full Text Papers
20-th AMSE. Applications of Mathematics and Statistics in Economics. International Scientific Conference: Szklarska Poręba, 30 August- 3 September 2017. Conference Proceedings Full Text Papers
Potential of Local Currencies in the Czech Republic: DSGE model

Gawthorpe, Katerina

2017
materiały konferencyjne
Argumenta Oeconomica
Argumenta Oeconomica
Gender unemployment in the Czech and Polish labour market

Ryczkowski, Maciej Zinecker, Marek

2020
artykuł
Polsko-czeskie relacje w ujęciu społeczno-ekonomicznym

Krawiec, Karolina Drelich-Skulska, Bogusława. Redakcja Sobocińska, Magdalena. Redakcja

2023
rozdział
Biblioteka Regionalisty
Biblioteka Regionalisty
Development of regional innovation environment in the northern part of Czechia

Hlaváček, Petr

2017
artykuł
Biblioteka Regionalisty
Biblioteka Regionalisty
Regional Differentiation of the Innovative Potential of Enterprises in the Czech Republic

Hlaváček, Petr Mata, Martin

2022
artykuł
Prace Naukowe Uniwersytetu Ekonomicznego we Wrocławiu
Prace Naukowe Uniwersytetu Ekonomicznego we Wrocławiu
Is the Flat Open-Economy Phillips Curve Deceptive Illusion?

Nowak, Dominik

2009
artykuł
20-th AMSE. Applications of Mathematics and Statistics in Economics. International Scientific Conference: Szklarska Poręba, 30 August- 3 September 2017. Conference Proceedings Full Text Papers
20-th AMSE. Applications of Mathematics and Statistics in Economics. International Scientific Conference: Szklarska Poręba, 30 August- 3 September 2017. Conference Proceedings Full Text Papers
Pension Age Which Would Guarantee Stabilization of the Old Age Dependency Ratio

Fiala, Tomáš Langhamrová, Jitka

2017
materiały konferencyjne
More
×

Citation

Citation style:

Contact details

Address

Wrocław University of Science and Technology (Coordinator)
Library of Wrocław University of Science and Technology
Wybrzeże Wyspiańskiego 27
50-370 Wrocław, Poland

Phone

(+48) 71-320-38-30
(+48) 71-320-47-50

E-Mail

bc@pwr.edu.pl

Visit us!

https://biblioteka.pwr.edu.pl/

This page uses 'cookies'. More information