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-linear rules, using the Markov-switching model. Our findings suggest that in the Cze...
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| Format: | Article |
| Language: | English |
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Lodz University Press
2017-03-01
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| Series: | Comparative Economic Research |
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| Online Access: | https://czasopisma.uni.lodz.pl/CER/article/view/1715 |
| _version_ | 1818690086395445248 |
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| author | Joanna Mackiewicz-Łyziak |
| author_facet | Joanna Mackiewicz-Łyziak |
| author_sort | Joanna Mackiewicz-Łyziak |
| collection | DOAJ |
| description | 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. |
| first_indexed | 2024-12-17T12:20:24Z |
| format | Article |
| id | doaj.art-b58e9c4be8ec46dd9f757e4a93e74d26 |
| institution | Directory Open Access Journal |
| issn | 1508-2008 2082-6737 |
| language | English |
| last_indexed | 2024-12-17T12:20:24Z |
| publishDate | 2017-03-01 |
| publisher | Lodz University Press |
| record_format | Article |
| series | Comparative Economic Research |
| spelling | doaj.art-b58e9c4be8ec46dd9f757e4a93e74d262022-12-21T21:48:59ZengLodz University PressComparative Economic Research1508-20082082-67372017-03-01201355110.1515/cer-2017-00031715Are Central Banks In CEE Countries Concerned About The Burden Of Public Debt?Joanna Mackiewicz-Łyziak0Warsaw University, Faculty of Economic SciencesThe 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.https://czasopisma.uni.lodz.pl/CER/article/view/1715monetary policygeneral government debttaylor ruleregime switching |
| spellingShingle | Joanna Mackiewicz-Łyziak Are Central Banks In CEE Countries Concerned About The Burden Of Public Debt? Comparative Economic Research monetary policy general government debt taylor rule regime switching |
| title | Are Central Banks In CEE Countries Concerned About The Burden Of Public Debt? |
| title_full | Are Central Banks In CEE Countries Concerned About The Burden Of Public Debt? |
| title_fullStr | Are Central Banks In CEE Countries Concerned About The Burden Of Public Debt? |
| title_full_unstemmed | Are Central Banks In CEE Countries Concerned About The Burden Of Public Debt? |
| title_short | Are Central Banks In CEE Countries Concerned About The Burden Of Public Debt? |
| title_sort | are central banks in cee countries concerned about the burden of public debt |
| topic | monetary policy general government debt taylor rule regime switching |
| url | https://czasopisma.uni.lodz.pl/CER/article/view/1715 |
| work_keys_str_mv | AT joannamackiewiczłyziak arecentralbanksinceecountriesconcernedabouttheburdenofpublicdebt |