Cílování inflace v zemích Visegrádské čtyřky

Abstract

The aim of this thesis is to assess the reaction function of central banks located in Visegrad Group Countries. The thesis is divided into four main parts. First part focuses on the inflation targeting since it has been established. The second part aims to show on how the inflation targeting is established in Visegrad Group Countries. Within the third part of the thesis, history of reaction function is presented as well as the research of selected empirical studies. The final part of the thesis aims to assess and compare particular countries based on the reaction function rating. Within the model of reaction function, basic interest rate is considered to be an independent variable and as dependent variable deviation of inflation, output gap, nominal exchange rate and foreign interest rate are considered. Final conclusions indicate that inflation decreased continuously in all targeted Countries. However, responses given by central banks did not meet the original presumptions.