CEU Electronic Theses and Dissertations, 2009
| Author | Tarkhan-Mouravi, Giorgi |
|---|---|
| Title | Estimating Taylor-Type Rules in Central and Eastern Europe |
| Summary | This paper set out to estimate Taylor-type rules for four emerging European economies with inflation targets. Using the different specifications, methods and forecast horizons I suggest a number of interesting results. In the case of the Czech Republic the estimates from different specifications are surprisingly robust, yet in the case of Hungary one gets the opposite results, based on the assumption of the target horizon of the central bank. Additionally the paper provides some evidence of explicit exchange rate consideration in the policy reaction function by Hungary and the Czech Republic, in line with the theory offered by Obsfeld and Rogoff (1995) as well as Taylor (2001), and illustrates the policy shift in Romania. Finally, the paper provides the specific functional forms of the Taylor rules of the analyzed countries that track the historic record of the short-term interest rates remarkably well. |
| Supervisor | Rabitsch, Katrin; Gillman, Max |
| Department | Economics MA |
| Full text | https://www.etd.ceu.edu/2009/tarkhan-mouravi_giorgi.pdf |
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