How Can the Czech National Bank Eliminate the Zero Lower Bound on Interest Rates? A Case Study
| Autor: | Bc. Alexandra Katinová |
|---|---|
| Rok: | 2018 - letní |
| Vedoucí: | prof. PhDr. Tomáš Havránek Ph.D. |
| Konzultant: | |
| Typ práce: | Bakalářská |
| Jazyk: | Anglicky |
| Stránky: | 72 |
| Ocenění: | |
| Odkaz: | https://is.cuni.cz/webapps/zzp/detail/185761/ |
| Abstrakt: | The thesis provides case study research on the feasibility of the negative interest rate policy in the context of the Czech Republic. No major obstacles opposing the policy itself were found in the bases of the Czech legal system, however, a list of acts explicitly affected by the value of policy rates needs to be adjusted to prevent misinterpretations. Moreover, it was identified that tax prepayments held by the Tax Authority and free reserves kept at the Czech National Bank at zero interest rate create room for escaping from the policy. Additionally, debt repayments in cash and interest-free accounts of government and public institutions administrated by the Czech National Bank could lead to undesirable advantages. A complementary VAR model analysis of the interest rate transmission under negative policy rates was performed to evaluate quantitatively the experience from European countries, however, short data series available provided merely indicative results. |
