C 2020

From float to currency floor and back to float: the Czech National Bank's temporary exchange rate commitment,

FRAIT, Jan and Marek MORA

Basic information

Original name

From float to currency floor and back to float: the Czech National Bank's temporary exchange rate commitment,

Name in Czech

Od floatingu k fixu a pak zpět

Authors

FRAIT, Jan and Marek MORA

Edition

Basel, BIS Papers, p. 121-132, 12 pp. BIS papers 113, 2020

Publisher

Bank for International Settlements

Other information

Language

English

Type of outcome

Kapitola resp. kapitoly v odborné knize

Field of Study

50206 Finance

Country of publisher

Switzerland

Confidentiality degree

není předmětem státního či obchodního tajemství

Publication form

electronic version available online

References:

Organization unit

University of Finance and Administration

ISBN

978-92-9259-442-8

Keywords (in Czech)

Czech National Bank; monetary policy instruments; zero interest rates; government bond market money market

Keywords in English

Czech National Bank; monetary policy instruments; zero interest rates; government bond market; money market

Tags

International impact, Reviewed
Změněno: 31/5/2021 07:28, Bc. Jan Peterec

Abstract

V originále

In this note, we discuss the Czech National Bank’s experience with the one-sided exchange rate commitment it applied from November 2013 to April 2017 as an additional monetary policy instrument to ease monetary conditions. We describe the CNB’s operations in the foreign exchange market and developments in the Czech government bond and money markets in relation to the commitment. The CNB’s experience with its temporary exchange rate commitment and with the subsequent exit serves as a case study of a successful policy measure in a small open inflation targeting economy facing a severe risk of deflation and zero monetary policy interest rates.

In Czech

In this note, we discuss the Czech National Bank’s experience with the one-sided exchange rate commitment it applied from November 2013 to April 2017 as an additional monetary policy instrument to ease monetary conditions. We describe the CNB’s operations in the foreign exchange market and developments in the Czech government bond and money markets in relation to the commitment. The CNB’s experience with its temporary exchange rate commitment and with the subsequent exit serves as a case study of a successful policy measure in a small open inflation targeting economy facing a severe risk of deflation and zero monetary policy interest rates.