Abstract
Because of the crisis and, inter alia, to restore economic growth, some central banks have applied a non-standard monetary policy. In the case of the Czech Republic, this was in the form of foreign exchange interventions to support exports. Export is divided into sub-parts, which are examined by mainly using regression analysis in terms of changes in central bank indicators. The results show that foreign exchange interventions indeed had a positive impact on total exports, though considerably asymmetric. The standard instrument of the central bank, the Policy Interest Rate, has a much more significant impact on the industry.
Highlights
Given the relatively new situation created by the application of unconventional monetary policies, this paper brings new and updated findings concerning this area with regard to the impacts on the national economy of the Czech Republic
Given the fact that it is a significantly open economy with the great importance of exports determined by the exchange rate, it is more important to address the impacts of this market-distorting policy
This article deals with the evaluation of foreign exchange interventions in the case of the Czech Republic with an impact on the export sector, classified according to the nature of the exported goods
Summary
Given the relatively new situation created by the application of unconventional monetary policies, this paper brings new and updated findings concerning this area with regard to the impacts on the national economy of the Czech Republic. The foreign exchange intervention method was used and, as in other countries using non-standard monetary policy, the aim was to restore price growth as well as GDP growth. Given the fact that it is a significantly open economy with the great importance of exports determined by the exchange rate, it is more important to address the impacts of this market-distorting policy. The main aim of this article is to verify the positive impacts of foreign exchange interventions on exports as a whole as well as on individual export. 192 | David KRIZEK, Josef BRCAK industries From this perspective, this is a unique approach, as the channel through which the primary goal is to be achieved is analysed.
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