Template-Type: ReDIF-Paper 1.0
Author-Name: Martins Bitans
Author-X-Name-First: Martins
Author-X-Name-Last: Bitans
Author-Workplace-Name: Bank of Latvia
Author-Name: Dace Slakota
Author-X-Name-First: Dace
Author-X-Name-Last: Slakota
Author-Workplace-Name: Bank of Latvia
Author-Name: Ivars Tillers
Author-X-Name-First: Ivars
Author-X-Name-Last: Tillers
Author-Workplace-Name: Bank of Latvia
Title: Price Dynamics in Latvia - Experience and Future Prospects
Abstract: The Latvian experience shows that the central bank's successful monetary policy, together with the government's prudent policies, helps to reduce inflation. Due to Latvia's small size and high degree of openness of its economy, the exchange rate plays a significant role in determining inflation in the country. The Bank of Latvia's interim objective - the stability of the exchange rate - has been the key to achieving and maintaining price stability. In light of the fact that many factors that determine inflation in Latvia are beyond the central bank's control, the pursuit of a strategy based on inflation targeting appears to be difficult.
Creation-Date: 2001-12-04
File-URL: https://www.bank.lv/public_files/images/img_lb/izdevumi/english/citas/cenu_dinamika-eng.pdf
File-Format: Application/pdf
File-URL: https://www.macroeconomics.lv/sites/default/files/cenu_dinamika-eng.pdf
File-Format: Application/pdf
Number: 2001/01
Classification-JEL: C13, E31
Keywords: monetary policy, inflation, Phillips curve
X-File-Ref: https://repec.bank.lv/refs/wpaper200101.txt
Handle: RePEc:ltv:wpaper:200101