Inflation Target and its Impact on Macroeconomy in the Zero
Lower Bound Environment: the case of the Czech economy

J 2016

Inflation Target and its Impact on Macroeconomy in the Zero Lower Bound Environment: the case of the Czech economy

HLOUŠEK, Miroslav

Základní údaje

Originální název

Inflation Target and its Impact on Macroeconomy in the Zero Lower Bound Environment: the case of the Czech economy

Autoři

HLOUŠEK, Miroslav (203 Česká republika, garant, domácí)

Vydání

Národohospodářský obzor – Review of Economic Perspectives, Brno, Masaryk University, 2016, 1213-2446

Další údaje

Jazyk

angličtina

Typ výsledku

Článek v odborném periodiku

Obor

50200 5.2 Economics and Business

Stát vydavatele

Česká republika

Utajení

není předmětem státního či obchodního tajemství

Odkazy

URL

Kód RIV

RIV/00216224:14560/16:00089654

Organizační jednotka

Ekonomicko-správní fakulta

DOI

http://dx.doi.org/10.1515/revecp-2016-0001

UT WoS

000406944500001

EID Scopus

2-s2.0-84962659717

Klíčová slova anglicky

zero lower bound on interest rate; inflation target; DSGE model

Příznaky

Recenzováno

Změněno: 1. 3. 2018 08:05, Ing. Miroslav Hloušek, Ph.D.

Anotace

V originále

This paper uses a stochastic simulation of a DSGE model of the Czech economy to study the macroeconomic consequences of inflation target setting when interest rates are constrained by the zero lower bound. The distortions of this constraint depend non-linearly on the inflation target. For an inflation target of two percent the costs are negligible, but they increase steeply with lower target values. The largest impact is on the average values of output, consumption and investment; inflation is only slightly influenced. The volatility of all the variables considered increases significantly, but only for inflation targets that are close to zero. An inflation target of four percent does not bring additional benefits either in terms of low-er volatility or in terms of higher average values.

Návaznosti

MUNI/A/1049/2015, interní kód MU

Název: Makroekonomická analýza chování ekonomiky a hospodářské politiky pomocí kvantitativních metod

Investor: Masarykova univerzita, Makroekonomická analýza chování ekonomiky a hospodářské politiky pomocí kvantitativních metod, DO R. 2020_Kategorie A - Specifický výzkum - Studentské výzkumné projekty

Citovat

HLOUŠEK, Miroslav. Inflation Target and its Impact on Macroeconomy in the Zero Lower Bound Environment: the case of the Czech economy. Národohospodářský obzor – Review of Economic Perspectives. Brno: Masaryk University, 2016, roč. 16, č. 1, s. 3-16. ISSN 1213-2446. Dostupné z: https://dx.doi.org/10.1515/revecp-2016-0001.

@article{1341756,
   author = {Hloušek, Miroslav},
   article_location = {Brno},
   article_number = {1},
   doi = {http://dx.doi.org/10.1515/revecp-2016-0001},
   keywords = {zero lower bound on interest rate; inflation target; DSGE model},
   language = {eng},
   issn = {1213-2446},
   journal = {Národohospodářský obzor – Review of Economic Perspectives},
   title = {Inflation Target and its Impact on Macroeconomy in the Zero Lower Bound Environment: the case of the Czech economy},
   url = {http://is.muni.cz/do/econ/soubory/aktivity/obzor/6182612/62368619/2016_1_01.pdf},
   volume = {16},
   year = {2016}
}

TY  - JOUR
ID  - 1341756
AU  - Hloušek, Miroslav
PY  - 2016
TI  - Inflation Target and its Impact on Macroeconomy in the Zero Lower Bound Environment: the case of the Czech economy
JF  - Národohospodářský obzor – Review of Economic Perspectives
VL  - 16
IS  - 1
SP  - 3-16
EP  - 3-16
PB  - Masaryk University
SN  - 12132446
KW  - zero lower bound on interest rate
KW  - inflation target
KW  - DSGE model
UR  - http://is.muni.cz/do/econ/soubory/aktivity/obzor/6182612/62368619/2016_1_01.pdf
N2  - This paper uses a stochastic simulation of a DSGE model of the Czech economy to study the macroeconomic consequences of inflation target setting when interest rates are constrained by the zero lower bound. The distortions of this constraint depend non-linearly on the inflation target. For an inflation target of two percent the costs are negligible, but they increase steeply with lower target values. The largest impact is on the average values of output, consumption and investment; inflation is only slightly influenced. The volatility of all the variables considered increases significantly, but only for inflation targets that are close to zero. An inflation target of four percent does not bring additional benefits either in terms of low-er volatility or in terms of higher average values.
ER  -

HLOUŠEK, Miroslav. Inflation Target and its Impact on Macroeconomy in the Zero Lower Bound Environment: the case of the Czech economy. \textit{Národohospodářský obzor – Review of Economic Perspectives}. Brno: Masaryk University, 2016, roč.~16, č.~1, s.~3-16. ISSN~1213-2446. Dostupné z: https://dx.doi.org/10.1515/revecp-2016-0001.

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