Are Central Banks In CEE Countries Concerned About The Burden Of Public Debt?
Journal Title: Comparative Economic Research. Central and Eastern Europe - Year 2017, Vol 20, Issue 1
Abstract
The aim of this study is to analyze the monetary policy rules in the Czech Republic, Hungary and Poland, with public debt as an additional explanatory variable. We estimate linear rules by the GMM estimation and non-linear rules, using the Markov-switching model. Our findings suggest that in the Czech Republic and Poland the monetary authorities respond to growing public debt by lowering interest rates, while in Hungary the opposite may be observed. Moreover, we distinguish between passive and active monetary policy regimes and find that the degree of interest rate smoothing is lower and the response of the central banks to inflation and/or output gap is stronger in an active regime. In the passive regime, the output gap seems to be statistically insignificant.
Authors and Affiliations
JOANNA MACKIEWICZ-ŁYZIAK
Keywords
Related Articles
- EP ID EP322868
- DOI 10.1515/cer-2017-0003
- Views 102
- Downloads 0
Millenium Development Goals/UN And Sustainable Development Goals/UN As Instruments For Realising Sustainable Development Concept In The Global Economy
This article presents the results of analysis and evaluation of the main effects of the implementation of the eight UN Millennium Development Goals, in force until 2015, and to demonstrate differences between and prospec...
Are Central Banks In CEE Countries Concerned About The Burden Of Public Debt?
The aim of this study is to analyze the monetary policy rules in the Czech Republic, Hungary and Poland, with public debt as an additional explanatory variable. We estimate linear rules by the GMM estimation and non-line...
Determinants Of Productivity Of Ukrainian Firms
This paper examines the determinants of total factor productivity (TFP) of Ukrainian firms in manufacturing and services, using micro-level data for the years 2005 and 2013. We first estimate regressions for the pooled d...
Reduction Of An Economy's Raw Material Dependence And The Human Capital Of A Country
This paper evaluates the raw material dependence of two export-oriented oil and gas extracting countries. We find evidence of presence of the Dutch disease in both countries and of the resource curse in Russia. Reduction...
Do Callable Convertibles Support The Investment Process Of A Company? An Analysis Of The World Market Of Hybrid Debt
Using a sample of 1,705 convertible bonds issued by manufacturing and service companies from the United States (1,138 issues); Europe (270); and Asia (297) between 2004 and 2014 this paper investigates the role of callab...