## Czech Magic: Implementing Inflation-Forecast Targeting at the CNB

_IMF Working Papers, January 30, 2017_

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## Bibliographic details
- Authors: Kevin Clinton, Tibor Hlédik, Tomás Holub, Douglas Laxton, Hou Wang
- Published: January 30, 2017
- Series: IMF Working Papers
- DOI: https://doi.org/10.5089/9781475572971.001

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### Implementation experience and core findings
- The paper describes the CNB’s experience implementing an inflation-forecast targeting (IFT) regime.
- The CNB built a system for providing the economic information that policymakers need to implement IFT.
- The CNB’s experience has been described as "very successful in establishing confidence in monetary policy in the Czech Republic."
- The authors conclude the CNB’s experience should provide useful guidance for other central banks considering adopting an IFT regime.

### System for economic information and policy implementation
- Focus on building a forecasting and information system to support IFT decisions.
- Emphasis on providing policymakers with the economic information necessary to implement an IFT regime, including model-based forecasts and indicators relevant to inflation and the transmission mechanism.

### Policy relevance and thematic coverage
- Subject areas covered: Banking; Central bank policy rate; Exchange rates; Financial services; Foreign exchange; Inflation; Inflation targeting; Monetary policy; Prices; Short term interest rates.
- Keywords included: Central bank policy rate; Exchange rates; financial market; Global; IFT central bank; IFT monetary policy framework; Inflation; Inflation Targeting; interest rate path; market interest rate outlook; Monetary Policy; monetary policy model; nominal interest rate; Optimal Control; output gap; Policy interest rate decision; rate of inflation; reaction function; Short term interest rates; transmission mechanism; WP.

### Publication and document specifics
- Authors: Kevin Clinton, Tibor Hlédik, Tomás Holub, Douglas Laxton, Hou Wang
- Date: January 30, 2017
- Series: Working Paper No. 2017/021
- Issue: 021
- Volume: 2017
- Pages: 56
- DOI: https://doi.org/10.5089/9781475572971.001
- ISBN: 9781475572971
- ISSN: 1018-5941
- Stock No: WPIEA2017021

*IMF Working Paper: "Czech Magic: Implementing Inflation-Forecast Targeting at the CNB", IMF Working Papers 2017, 021 (2017).*

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_Source: https://www.imf.org/en/publications/wp/issues/2017/01/30/czech-magic-implementing-inflation-forecast-targeting-at-the-cnb-44604_