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dc.contributor.authorGolinelli, Robertoen_US
dc.contributor.authorRovelli, Riccardoen_US
dc.date.accessioned2009-01-29T14:52:02Z-
dc.date.available2009-01-29T14:52:02Z-
dc.date.issued2002en_US
dc.identifier.urihttp://hdl.handle.net/10419/22126-
dc.description.abstractIn 1991, the rate of inflation in the Czech Republic, Hungary and Poland was between 35% and 70%. At the end of 2001, it is below 8%. We setup a small structural macro model of these economies to explain the process of disinflation. Contrary to a widespread skepticism, which permeated a large part of previous research on these issues, we show that a simple open macroeconomic model, along the lines of Svensson (2000, Journal of International Economics), with forwardlooking inflation and exchange rate expectations, can adequately characterize the relationship between the output gap, inflation, the real interest rate and the exchange rate during the course of transition. We use the estimated models to interpret the main features of monetary policy in each country and identify the channels of policy transmission. We characterize the policy rules and assess the relative importance of the interest rate channel (on aggregate demand) and the exchange rate channel (which affects both aggregate demand and supply) in determining the path of (dis)inflation. In the same context, we also tentatively analyze the consequences of attempting a faster path of disinflation. Finally, we evaluate the appropriateness of the inflation targeting framework which has been adopted recently in all three countries, and discuss to what extent it represents a discontinuity with the past.en_US
dc.language.isoengen_US
dc.publisheren_US
dc.relation.ispartofseriesEzoneplus working paper 10en_US
dc.subject.jelF41en_US
dc.subject.jelE52en_US
dc.subject.jelE31en_US
dc.subject.jelP24en_US
dc.subject.ddc330en_US
dc.subject.keywordDisinflation policyen_US
dc.subject.keywordInterest rate rulesen_US
dc.subject.keywordInflation targetingen_US
dc.subject.keywordTransition economiesen_US
dc.subject.keywordSmall open-economy macro modelsen_US
dc.subject.stwTransmissionsmechanismusen_US
dc.subject.stwInflationsbekämpfungen_US
dc.subject.stwInflation Targetingen_US
dc.subject.stwZinspolitiken_US
dc.subject.stwÜbergangswirtschaften_US
dc.subject.stwKleines-offenes-Landen_US
dc.subject.stwTschechische Republiken_US
dc.subject.stwUngarnen_US
dc.subject.stwPolenen_US
dc.titleMonetary Policy Transmission, Interest Rate Rules and Inflation Targeting in Three Transition Countriesen_US
dc.typeWorking Paperen_US
dc.identifier.ppn393755975en_US
dc.rightshttp://www.econstor.eu/dspace/Nutzungsbedingungen-
Appears in Collections:Ezoneplus Working Papers, Jean Monnet Centre of Excellence, FU Berlin

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