Aleš Bulíř, Jan Vlček
Does monetary policy react systematically to macroeconomic innovations? In a sample of 16 countries – operating under various monetary regimes – we find that monetary policy decisions, as expressed in yield curve movements, do react to macroeconomic innovations and these reactions reflect the monetary policy regime. While we find evidence of the primacy of the price stability objective in the inflation-targeting countries, the links to inflation and the output gap are generally weaker and less systematic in money-targeting and multiple-objective countries.
JEL codes: E43, E52, G12
Keywords: Monetary transmission, yield curve
Issued: September 2019
Download: CNB WP No. 3/2019 (pdf, 466 kB)