F U R K A N T E M Ü R

R A Z İ Y E A Y D E M İ R

Czech Republic Policies

Outline

Introduction

Monetary policy instruments and exchange rates

Inflation Targeting

Economic growth

International investment position

Private & Public debt

Economic indicators

Conclusion

Referenc List

Czech National Bank

1993

Price Stability

Economic growth

Currency

Monetary Policy Instruments

Open market operations

Automatic facilities

Extraordinary facilities

Minimum reserves

Foreign interventions

Flexible Exchange Rates

Inflation Targeting

About inflation targeting

Monetary Policy Regimes

1993 – May 1997

May 1997 – end of 1997

1998

Inflation Targeting

After Crisis

Inflation Forecast

Output Gap

Growth: developed countries

Growth: developing countries

Potential Growth

International investment position

Private sector and Public debt

Economic indicators

Czech Republic: Selected Economic Indicators, 2008–16 2008 2009 2010 2011 2012 2013 2014 2015 2016

Nominal GDP (USD billions) 225,4 197,2 198,5 216,1 196,4 198,4 200 208,9 216,7

Population (millions) 10,3 10,4 10,5 10,5 10,5 10,5 10,5 10,6 10,6

GDP per capita (USD) 21,794 18,913 18,973 20,603 18,699 18,871 18,985 19,796 20,511

Real GDP 3,1 -4,5 2,5 1,8 -1 -0,9 2,5 2,5 2,4

Domestic demand 2,2 -5,4 2 -0,1 -2,9 -0,8 1,8 2,9 2,8

Private consumption 2,8 0,2 0,9 0,5 -2,1 0,1 1,3 2,5 2,5

Investment 1,9 -20,2 5,4 0,8 -5 -4,4 3 4,4 4

Exports 4 -10,9 15,4 9,5 4,5 0,2 7,2 5 4

Imports 2,7 -12,1 15,4 7 2,3 0,6 7 5,8 4,6

Ouput gap (percent of potential output) 5,4 -2,7 -1,2 0,2 -1,3 -2,7 -1,9 -0,5 -0,1

Unemployment rate (in percent) 4,4 6,7 7,3 6,7 7 7 6,4 6 5,6

Private sector credit 16,1 0,8 3 5,5 2,6 3,7 … … …

Interest rates (in percent, year average)

Three-month interbank rate 1/ 4 2,2 1,3 1,2 1 0,5 0,4 … …

Ten-year government bond 2/ 4,6 4,8 3,9 3,7 2,8 2,1 2 … …

Balance of payments (percent of GDP)

Trade balance (goods and services) 2,7 4,3 3,4 4,2 5,5 6,2 7 6,9 6,9

Current account balance -2,1 -2,5 -3,8 -2,9 -1,3 -1,4 -0,2 -0,3 -0,4

Conclusion

Czech National Bank

Monetary Policy Tools

Exchange Rate

Inflation Targeting and Forecasting

References

Czech National Bank. (n.d.). Czech National Bank.

Retrieved January 5, 2014, from http://www.cnb.cz/en/index.html

Janacek, K. (2012). Monetary Policy and Financial Stability in Small and Emerging Economies: Flexibility and Reflectiveness Do Pay Off.

Ed Dolan's Econ. (n.d.). Why Exchange Rates Matter in a Crisis: Latvia vs. Czech Republic. Retrieved January 5, 2014, from http://dolanecon.blogspot.com/

Thank you for your attention