{"id":113256,"date":"2024-01-22T18:29:18","date_gmt":"2024-01-22T17:29:18","guid":{"rendered":"https:\/\/www.wifo.ac.at\/publication\/113256\/"},"modified":"2025-10-22T21:47:32","modified_gmt":"2025-10-22T19:47:32","slug":"the-effects-of-monetary-policy-in-the-czech-republic-an-empirical-study","status":"publish","type":"publication","link":"https:\/\/www.wifo.ac.at\/en\/publication\/113256\/","title":{"rendered":"The Effects of Monetary Policy in the Czech Republic: An Empirical Study"},"content":{"rendered":"","protected":false},"featured_media":0,"template":"","class_list":["post-113256","publication","type-publication","status-publish","hentry"],"acf":{"subtitle":"","text":"In this paper, we examine the effects of Czech monetary policy on the economy within the vector auto regression (VAR), structural VAR, Bayesian VAR with sign restrictions, and factor-augmented VAR, frameworks. We document a well-functioning transmission mechanism similar to the euro area countries, especially in terms of persistence of monetary policy shocks. Subject to various sensitivity tests, we find that a contractionary monetary policy shock has a negative effect on the degree of economic activity and the price level, both with a peak response after one year or so. Regarding prices at the sectoral level, tradables adjust faster than non-tradables, which is in line with microeconomic evidence on price stickiness. There is no price puzzle, as our data come from a single monetary policy regime. There is a rationale in using the real-time output gap instead of current GDP growth, as using the former results in much more precise estimates. The results indicate a rather persistent appreciation of the domestic currency after a monetary tightening, with a gradual depreciation afterwards.","onlinedate":"2009-11-01 01:00:00","lang":"English","publication_series":"","publication_date":"20091101","publication_date_year":"","publication_date_full":false,"publication_num_pages":"","keywords":"[]","jelcodes":"[]","related_publications":"[]","pdf":null,"zip":null,"link":"http:\/\/www.springer.com\/10663","monthly_report":false,"monthly_report_main":false,"monthly_report_volume":"36","monthly_report_pages":"419-443","monthly_report_pages_sort":"419","issue":"4","journal":"Empirica","publisher":"","invisible":false,"external":true,"embargo_date":null,"types":[83083],"research_groups":[3500],"collaboration":"","persons":[14907,14919,14885],"persons_data":"[{\"personId\":14907,\"personName\":\"Magdalena Morgese Borys\",\"organisationNames\":[]},{\"personId\":14919,\"personName\":\"Roman Horv\u00e1th\",\"organisationNames\":[]},{\"personId\":14885,\"personName\":\"Michal Franta\",\"organisationNames\":[]}]","clients":[],"subclients":[],"partners":[],"topics":[],"host_publication_title":"","host_publication_subtitle":"","place_of_publication":"","host_publication_editors":"[]","type_description":"","output_media":"","chapter":"","article_number":"","scientific_assistance":"[]","scientific_review":"[]","version":"","release_date":null,"expiration_date":null,"surveyor":"","research_assistance":"","edv":"","additional_info_de":"","additional_info_en":""},"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v26.5 (Yoast SEO v26.5) - 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