Adoption of the FX Commitment in the Czech Republic: Some Reflections of the Insider

Řežábek, Pavel

ADOPTION OF THE FX COMMITMENT IN THE CZECH REPUBLIC: SOME REFLECTIONS OF THE INSIDER

PAVEL ŘEŽÁBEK

Abstract:

This article discusses the decision of the Czech National Bank from November 2013 to use the exchange rate as an additional monetary policy instrument from the point of view of one the Board members present in the monetary policy meeting under discussion. Even a few years after the end of the intervention regime, it is impossible to objectively assess all the advantages and disadvantages and future risks of this step. The goal of this article is not to provide a systematic analysis of the impact of FX interventions, but to reflect on some of their controversial or risky aspects in view of the global economic development.

Keywords:
GDP, monetary policy; central bank, FX intervention, deflation, inflation target, inflation expectations, exchange rate, macroprudential policy, self-reflection, art of communication

DOI: 10.20472/BM.2021.9.2.004

PDF:
Download

APA citation:
PAVEL ŘEŽÁBEK (2021). Adoption of the FX Commitment in the Czech Republic: Some Reflections of the Insider. International Journal of Business and Management, Vol. IX(2), pp. 49-56. , DOI: 10.20472/BM.2021.9.2.004