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dc.contributor.authorZiegler, Christinaen_US
dc.date.accessioned2012-03-05en_US
dc.date.accessioned2012-03-08T10:30:11Z-
dc.date.available2012-03-08T10:30:11Z-
dc.date.issued2012en_US
dc.identifier.urihttp://hdl.handle.net/10419/55847-
dc.description.abstractMonetary policy in CEE is an important determinant in the wage bargaining process, because trade unions have to predict inflation as one component of future real wages. This paper scrutinizes whether countries in CEE that officially announce an inflation target are tempted to act time-inconsistently and switch from the announced inflation target to an exchange rate target in order to sustain higher output via surprise inflation. If market participants discover the time-inconsistency, they will adjust their inflation expectations, which result in higher average rates of price increases. The time-inconsistent behavior in central bank interest rate setting is modeled by several Taylor rules. An empirical application provides evidence that some monetary authorities in CEE such as the Czech Republic and Slovakia have acted timeinconsistent and have focused on the exchange rate in periods of official inflation targeting, which might have contributed to higher average rates of inflation and welfare losses. Furthermore, uncertainty in wage determination process has risen due to a harder predictability of productivity and inflation as components of future nominal wages.en_US
dc.language.isoengen_US
dc.publisherUniv., Wirtschaftswissenschaftliche Fakultät Leipzigen_US
dc.relation.ispartofseriesWorking Paper // Universität Leipzig 104en_US
dc.subject.jelE52en_US
dc.subject.jelE58en_US
dc.subject.jelF31en_US
dc.subject.jelO52en_US
dc.subject.jelP20en_US
dc.subject.ddc330en_US
dc.subject.keywordmonetary policyen_US
dc.subject.keywordTaylor rulesen_US
dc.subject.keywordexchange rate regimeen_US
dc.subject.keywordCentral and Eastern Europeen_US
dc.subject.keywordinflation targetingen_US
dc.subject.stwGeldpolitiken_US
dc.subject.stwZeitkonsistenzen_US
dc.subject.stwTaylor-Regelen_US
dc.subject.stwInflation Targetingen_US
dc.subject.stwWechselkurssystemen_US
dc.subject.stwWirkungsanalyseen_US
dc.subject.stwInflationen_US
dc.subject.stwWohlfahrtseffekten_US
dc.subject.stwOstmitteleuropaen_US
dc.subject.stwOsteuropaen_US
dc.titleMonetary policy under alternative exchange rate regimes in Central and Eastern Europeen_US
dc.typeWorking Paperen_US
dc.identifier.ppn687930391en_US
dc.rightshttp://www.econstor.eu/dspace/Nutzungsbedingungenen_US
dc.identifier.repecRePEc:zbw:leiwps:104-
Appears in Collections:Working Papers, Universität Leipzig

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