IMF Staff Country Reports

Czech Republic: Selected Issues

Publication Date:

May 22, 1998

Electronic Access:

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Summary:

This Selected Issues paper examines recent developments in inflation and its key determinants in the Czech Republic, with particular focus on the role of wages. A simple analytical framework is presented that relates inflation to wages, import prices, and money, and the interaction of inflation with these variables is then examined empirically in the context of a vector autoregression model. The findings confirm the critical influence of wages, exchange rate changes, and money growth. The paper also analyzes developments in the public finance.

Series:

Country Report No. 1998/036

Subject:

Banking Credit External debt Inflation Money Personal income tax Prices Revenue administration Taxes