cnBlog – How long is the “correct” monetary policy horizon?
The blog article by Bank Board member Jan Frait and adviser to the Bank Board Jakub Matějů is in response to the public discussion which unfolded after the CNB, in its latest forecast, chose a monetary policy horizon that was six months longer than in the past. The article explains that shifting the monetary policy horizon in reaction to a major shock is a standard part of a flexible monetary policy response and is not unusual by international comparison.