Proticyklická kapitálová rezerva v kontextu cílování inflace ČNB

This thesis confronts the current CNB monetary policy settings with the newly applied macroprudential tool a counter-cyclical capital buffer. The first part of the thesis defines the risk transmission channels of monetary policy and their influence on financial stability. It points to the negative externalities of the CNB exchange rate commitment between 2013 and 2017, above all the problem of hidden inflation in the economy. This issue is connected with the steep rise in property prices in recent years as well. The first part is concluded by the calculation of the alternative development of the consumer price index with the adjusted weight of real estate prices. The second part introduces the counter-cyclical capital reserve as a tool of the macro-prudential policy and its CNB methodological framework. The analysis points to the purposeful adjustments of the originally set methodology in favor of the implementation of the tool to reduce the negative externalities from the exchange rate commitment. The final part presents an alternative monetary policy development considering the use of the consumer price index with the adjusted weight of real estate prices. According to the model, there would be no need to introduce the exchange rate commitment. Therefore, the central bank would not have to introduce macro-prudential policy measures such as the counter-cyclical capital buffer. It affects the whole range of loans, and not only the real estate market to which the CNB primarily targets. At the same time, the central bank would avoid the loss of credibility caused by the change in the methodology framework.