Czech currency and monetary policy in 2000

Monetary policy in the Czech Republic in the year 2000 in the broader frame work of macroeconomic development is the topic of this article. The central bank's experience with inflation targeting, and the implementation of the inflation target in 2000 are assessed. The resumption of GDP growth and hig her imported fuels costs in 2000 dominated macroeconomic developments in th e country. This accentuated the un certainties for national monetary policy , namely in the course of identifying supply-side changes and identifying t he gap between potential and actual product. Arguments as to why the princi pal instrument of monetary policy, the repo rate, was parked at a stable le vel throughout 2000 are presented. For 2001, the available indicators seem to signal the likely continuation of the above-mentioned trends from 2000, which, consequently, provide a precondition for maintaining a stable moneta ry policy setting. The key challenges for balanced development in the mediu m term are: the ratio between wages and productivity, and trends in public finance.