The meeting was held under Chatham House Rules, with the exception of the presentation prepared by Mr. Singer for the meeting.

Principal conclusions and findings:

• The first part of the presentation covered the unconventional instruments (exchange rate interventions, negative interest rates and quantitative easing) used by central banks since the inception of the financial crisis, including ECB and central banks of Switzerland and Denmark. After the financial crisis the main objective for the use of unconventional instruments was to restore the transmission mechanism of the monetary policy. Since 2012 the fight with deflation/dezinflation and stimulation of demand have been also reflected.
• The reasons of the exchange rate interventions in Switzerland and Denmark were described and the differences form the Czech situation were pointed out. “Safe heaven currency” aspects works stronger in the case of Danish and in particular Swiss currency. Also Danish crown tight relations to EUR (fluctuation margin +- 2,25%).
• Swiss exit from the exchange rate interventions led to strengthening of the appreciation influences on Danish crown. Central Bank od Danemark reacted with decreasing of its main interest rates further to negative zone. All the instruments lead either directly or indirectly to influencing inflation and growth through the exchange rates.
• The Czech inter-bank offer rate (PRIBOR) and the mechanism of its creation through the system of the reference banks was, among other issues, described in the briefing paper which had been prepared for the event. It also reflected the EURIBOR and LIBOR manipulation scandals after the financial crisis and the reform attempts under the umbrella of international organizations and thus laid down the framework for the discussion about the actual Czech topic connected to the letter by a deputy finance minister to the Czech National Bank regarding PRIBOR.

Organizer

AMO

In cooperation with

Friedrich Naumann Foundation for Freedom