xmlui.ArtifactBrowser.SimpleSearch.filter.source:Scientific papers of the University of Pardubice. Series D, Faculty of Economics and Administration. 47/2019
ISSN:1211-555X (Print)
Abstract:
The aim of the paper is to analyse the influence of monetary aggregate M3
on inflation in the Czech Republic, Switzerland and Israel between the years 2000 and
2017. The central banks in selected countries have not been able to fulfill their stated
goal of achieving price stability. During the period under review, the selected central
banks chose foreign exchange intervention as an instrument of unconventional
monetary policy to achieve the set inflation target. The analysis of monetary policy in
the selected countries will be determined by the long-term relationships between the
M3 monetary aggregate and the inflation. Selected indicators were analyzed on
quarterly data in the Czech Republic, Switzerland and Israel using the Engle -
Granger cointegration test. We have found, based on the tests performed, that
monetary policy in the monitored countries was not quite effective in the years 2000-
2017 because we did not confirm in our empirical analyzes the long-term relationship
between the monetary aggregate M3 in relation to inflation.