Transmission Mechanisms of Monetary Policy in Central and Eastern Europe. A Dynamic VAR Analysis

The project was financed by CERGE-EI.

A team of economists - Georgy Ganev (Centre for Liberal Strategies, Sofia), Krisztina Molnar (Hungarian National Bank) and Krzysztof Rybiński (BPH PBK Bank, Poland), led by Przemysław Woźniak (CASE) - researched the transmission mechanisms of monetary policy in several Central and Eastern European countries using comparative methodology. The empirical analysis covered two transmission channels: interest rates and exchange rates, using reaction functions, causality tests and co-integration.

Results of the research were published in the CASE Network Reports series "Transmission Mechanism of Monetary Policy in Central and Eastern Europe" in October 2002.