Striving to Be "Clearly Open" and "Crystal Clear"

Striving to Be "Clearly Open" and "Crystal Clear"

Monetary Policy Communication of the CNB

by Mr. Ales Bulir, Ms. Katerina Smídková

22 pages· 2008· ISBN 9781451913996
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The Czech National Bank has a respectable track record in terms of its policy actions and the corresponding inflation outturns. Using a simple forward-looking policy rule, we find that its main communication tools-inflation targets, inflation forecasts, verbal assessments of the inflation risks contained in quarterly inflation reports, and the voting within the CNB Board-provided a clear message in about three out of every four observations in our 2001- 2005 sample.

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