This thesis deals with the use of foreign-exchange interventions as an unconventional tool of monetary policy in inflation targeting regime. It is primary focused on monetary policy of the Czech National Bank and foreign-exchange interventions that have been executed since November 2013. Further, it is devoted to interventions executed by the Swiss National Bank and the Bank of Israel. The main aim is to analyse the experience of previously mentioned central banks with foreign-exchange interventions, to describe main reasons and goals, and especially impacts of interventions on economies of related countries while focusing on inflation, GDP and unemployment. The last part provides the evaluation of referred intervention regimes and their comparison.

DSGE models are as structural models capable of estimating what would have happened if some part of economy or shocks to it had been different. We consider three such differences in the recent Czech history: no financial shocks during the crisis in 2008-2009; eurozone membership during the crisis in 2008-2009; and no foreign exchange interventions of the Czech National Bank in November 2013. For this purpose, we employ a small open economy DSGE model with financial frictions and estimate it with Bayesian inference. Our results show that impact of financial shocks on GDP growth was negligible. Further, eurozone membership would have made crisis more severe; GDP growth in 2009Q1 would have been -6% instead of -3% and economy would have been in deflation for the five consecutive periods. Difference is explained by strong depreciation of exchange rate during crisis that would not have occurred with the fixed exchange rate. Lastly, the Czech National Banks's foreign exchange interventions increased GDP growth by as much as 0.8 percentage point and saved economy from deflation in all following quarters. They worked through depreciation of exchange rate and consequent improvement in trade balance and increase in price of imported goods. Powered by TCPDF (www.tcpdf.org)

La crise financière de 2008-2009 a conduit à reconsidérer la relation entre politique monétaire et stabilité financière, soulignant la nécessité pour les banques centrales d’être plus attentives aux risques financiers. Cette crise a également mis en évidence les limites du cadre de régulation (micro)prudentielle existant, renforçant ainsi l’importance d’une approche macroprudentielle visant à contenir le risque systémique. La présente thèse s’articule autour de ces questions. L’objectif est d’analyser dans quelle mesure un cadre de politique monétaire avec pour objectif principal la stabilité des prix (tel le ciblage d’inflation), pourrait accentuer le risque d’instabilité financière. Il s’agit en outre de souligner et discuter le rôle que peuvent jouer les politiques monétaire et macroprudentielle pour assurer et renforcer la stabilité du secteur financier (Chapitre I). Les résultats de l’analyse suggèrent que les banques centrales cibleuses d’inflation ont été mieux à même de contenir les conséquences de la récente crise financière (Chapitre II). Cependant, il semble que le risque d’instabilité financière soit plus fort au sein des pays émergents cibleurs d’inflation (comparé aux non-cibleurs), malgré les réponses des banques centrales aux déséquilibres financiers (Chapitre III). Ceci remet en cause l’efficacité de la stratégie du leaning against the wind. Nos conclusions montrent que cette stratégie génère un conflit d’objectif entre stabilité macroéconomique et stabilité financière. La mise en place d’un cadre macroprudentiel efficace, associé à une politique monétaire plus sensible aux risques financiers, permettrait de garantir un environnement économique globalement plus stable (Chapitre IV). Par ailleurs, il apparait que les pays émergents cibleurs d’inflation s’appuient sur le contrôle du taux de change pour faire face à la forte vulnérabilité de leur système financier aux chocs externes; ceci en dépit de l’exigence de flexibilité du change que requiert cette stratégie de politique monétaire (Chapitre V). / The 2008/2009 global financial crisis has revived the debate on the concern for financial stability in themonetary policy-making, stressing the need to reconsider the role of central banks in ensuring financialstability. The crisis has also pointed some flaws in the existing (micro) prudential regulation and therelevance to move toward a broader regulatory framework aiming to prevent systemic risk. This thesis isbuilt upon these issues. It investigates the extent to which financial stability may be of particular concernin a context where the main monetary policy objective is inflation stabilization (typically, in an inflationtargeting regime –IT–). It further assesses how the macroprudential framework and monetary policy canbe articulated to ensure the best outcome in terms of macroeconomic and financial stability (Chapter I).The conclusions derived from this work suggest that, faced with the recent global financial turmoil,inflation targeting central banks have been more able to mitigate the shock, certainly thanks to higherpolicy credibility (Chapter II). However, we evidence that IT countries (especially in EMEs) are morefinancially vulnerable than their non-IT counterparts, despite central banks’ response to financial risks(Chapter III). Following the latter conclusion, we investigate more closely the effectiveness of the leaningagainst the wind strategy. We show that such a policy response generates trade-offs between thefinancial and macroeconomic stability objectives of the monetary authorities. The best stabilizationoutcome is achieved when an effective macroprudential framework is implemented, combined withhigher central bank’s concern with financial risks (Chapter IV). Furthermore, we show that in EMEsITers, foreign exchange interventions are used to mitigate their financial vulnerability to external shocks,although the IT regime requires a fully floating exchange rate regime (Chapter V).

Non-standard Monetary Policy Instruments of Central Banks Abstract The aim of this study is to analyze non-standard monetary instruments of central banks and their impact on the example of concrete use of these instruments by the Czech National Bank and the European Central Bank. The first part of this study defines the essence, the implementors, the tasks, and the objectives of the monetary policy. Its tools are also disassembled, both standard and nonstandard. From non-standard instruments, closer attention is paid to the theoretical definition of quantitative easing, negative interest rates and long-term maintenance of the exchange rate commitment. I also deal with the legal anchor, organization, purpose, history, and concept of the monetary policy of two selected central banks, namely the CNB and the ECB. The next part of the study presents the concrete form of non-standard measures used by the CNB and the ECB, it deals with the specific reasons that the central banks led to their implementation, the objectives with which they were adopted and the impact these measures had on the Czech economy and the euro area. Based on the analysis, it is possible to confirm the tested hypothesis that the Czech National Bank and the European Central Bank have succeeded in meeting the objectives set before their...

The main aim of this thesis is to evaluate both short term and long term impact of foreign exchange interventions, which were initiated by Czech central bank in November 2015, on the Czech economy. The first part of the text deals with theoretical aspects of the thesis, especially with the role of central bank and exchange rate, and with the historical development of both the monetary policy in the Czech Republic and Czech crown. Second part of the work investigates the causes that have led to the initiation of intervention régime and tries to clarify whether the triggering was truly justified. The main part of the thesis deals with the launch of interventions itself and also with the short term and longterm impacts on macroeconomic indicators. The end of the work is dedicated to a discussion of intervention regime exit, both to the time aspect and possible scenarios.

This diploma thesis is focused on unconventional monetary policy tools that individual central banks introduced into practise as a response to the global financial crisis. It is about quantitative easing policy, foreign exchange interventions with exchange rate commitment and negative interest rates. This thesis also deals with classical tools of monetary policy such as open market operations, discount tools, minimum requirement reserve or foreign exchange interventions. The aim of the thesis is to document the development of central banks policy and then to examine relationship of selected assets in comparison with balance sheet of Federal reserve systems with help of correlation coefficient. The thesis also deals with the thought how should behave in the zero lower bound environment and what are the pitfalls of unconventional monetary policy.