An Announced Regime Switch: Optimal Policy for the Transition Period

Finance a uver - Czech Journal of Economics and Finance; Volume (Year): 61 (2011) Issue (Month): 5 (November) Pages: 411-431

21 Pages Posted: 8 Jun 2013

See all articles by František Brázdik

František Brázdik

Czech National Bank; Charles University in Prague - CERGE-EI (Center for Economic Research and Graduate Education - Economics Institute)

Date Written: November 11, 2011

Abstract

The novelty of this article is its theoretical framework, which allows for modeling of an announced change in the type of monetary regime operated. The behavior of a small open economy that has announced the adoption of a monetary policy regime of offsetting nominal exchange rate changes is analyzed. The optimal monetary regime for the transition period and its effects on macroeconomic stability are studied. Moreover, the evolution of business cycle synchronization over the transition is analyzed.

Suggested Citation

Brázdik, František, An Announced Regime Switch: Optimal Policy for the Transition Period (November 11, 2011). Finance a uver - Czech Journal of Economics and Finance; Volume (Year): 61 (2011) Issue (Month): 5 (November) Pages: 411-431 . Available at SSRN: https://ssrn.com/abstract=2275299

František Brázdik (Contact Author)

Czech National Bank ( email )

Na Prikope 28
CZ-11503 Praha 1
Czech Republic

Charles University in Prague - CERGE-EI (Center for Economic Research and Graduate Education - Economics Institute) ( email )

P.O. Box 882
7 Politickych veznu
Prague 1, 111 21
Czech Republic

HOME PAGE: http://www.cerge-ei.cz

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