<abstract xmlns="http://www.w3.org/1999/xhtml"><p>Article deals with estimating real natural interest rate and exchange rate to construct monetary conditions index suitable for the Czech open economy. Despite unobservable characteristics of underlying interest rates and exchange rate, the importance of reference indicators for monetary policy is crucial. Proposed monetary condition index in gap form examines monetary impulse on economic and credit cycle in inflation targeting model.</p></abstract>

Article deals with estimating real natural interest rate and exchange rate to construct monetary conditions index suitable for the Czech open economy. Despite unobservable characteristics of underlying interest rates and exchange rate, the importance of reference indicators for monetary policy is crucial. Proposed monetary condition index in gap form examines monetary impulse on economic and credit cycle in inflation targeting model.

Estimating Natural Rate of Interest and Equilibrium Exchange Rate: A Case of the Czech Republic

Department of Economic policy, Macroeconomic Analysis Unit

Review of Economic Perspectives

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 3.0 License.

Article deals with estimating real natural interest rate and exchange rate to construct monetary conditions index suitable for the Czech open economy. Despite...

Estimating Natural Rate of Interest and Equilibrium Exchange Rate: A Case of the Czech Republic

Published Online: Dec 21, 2019

Page range: 231 - 248

Received: Apr 25, 2019

Accepted: Oct 10, 2019

DOI: https://doi.org/10.2478/revecp-2019-0013

Keywords
Natural Rate of Interest, Equilibrium Exchange Rate, Monetary Conditions Index

© 2019 Zdeněk Pikhart et al., published by Sciendo

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 3.0 License.

Estimating Natural Rate of Interest and Equilibrium Exchange Rate: A Case of the Czech Republic

Published Online: Dec 21, 2019

Page range: 231 - 248

Received: Apr 25, 2019

Accepted: Oct 10, 2019

DOI: https://doi.org/10.2478/revecp-2019-0013

KeywordsNatural Rate of Interest, Equilibrium Exchange Rate, Monetary Conditions Index

© 2019 Zdeněk Pikhart et al., published by Sciendo

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 3.0 License.

Keywords
Natural Rate of Interest, Equilibrium Exchange Rate, Monetary Conditions Index