Foreign Exchange Intervention by the Czech National Bank and its Consequences
Foreign Exchange Intervention by the Czech National Bank and its Consequences

Author(s): Miroslav Sponer, Martina Sponerová
Subject(s): National Economy, Economic policy, Financial Markets, Fiscal Politics / Budgeting
Published by: Masarykova univerzita nakladatelství
Keywords: deflation; exchange rate; foreign exchange interventions; monetary policy; zero lower bound;
Summary/Abstract: The article generally analyses the causes leading up to the foreign exchange intervention by the Czech National Bank in November 2013 and its consequences. The article examines the use of exchange rate by the Czech National Bank as a monetary policy instrument at the zero lower bound on interest rates. It explains the reasons for further easing monetary policy and for choosing the exchange rate instrument and its specific level, and discusses its expected benefits in the case of the Czech Republic.

• Details
• Contents