Estimating implicit inflation target of the ECB
|Author:||Mgr. Libor Melioris|
|Year:||2013 - summer|
|Leaders:|| prof. Roman Horváth Ph.D.
|Work type:|| EEI & EP
|Awards and prizes:|
|Abstract:||Existing estimations of implicit inflation target are primarily based on the assumption of parameter
stability over time horizon. This work relaxes this assumption and proposes alternative framework based
on time-varying parameter model. We aim on behaviour of European Central Bank in order to compare
its official proclamations of price stability levels with our implicit estimations. We will also examine
how two pillar strategy of European Central Bank is practically used.