Monetary Policy Transmissions Risks in the Contex of Economic Theories – One of the State Security Situation Determinants Group
Burian Stanislav, Svoboda Pavel, Hřebík František, Brčák Josef:
Monetary transmission is one of the trivial state security situation determinants. This paper deals with causal relationships within two basic monetary policy transmission mechanisms in the conditions Czech Republic. Methods, which are used for purposes of relevant time series adjustment and causal relationships determination within particular transmissions phases, are mentioned at the beginning of the paper. Brief specifications of the Keynesian, respectively monetarist monetary policy transmission theories follow. Generally defined transmissions are tested on the base of Granger causality interpretation. Problematic transmission phases are indentified with using Granger causality tests. These phases pose risks of specific phase dysfunctions which are represented by discrepancy between real relationships and economic theories assumptions.
Keywords: Czech Republic, Keynesianism, monetary policy, monetarism, state security situation risk, transmission mechanism.