FOREIGN EXPERIENCE OF USING THE DISCOUNT RATE AS A TOOL OF MACROECONOMIC REGULATION

2017 ◽  
Author(s):  
Lidiia Bondarenko ◽  
◽  
Roksolana Skip ◽  
Keyword(s):  
Monetary Policy ◽  
Czech Republic ◽  
Discount Rate ◽  
Banking System ◽  
Frequent Change ◽  
The Czech Republic ◽  
Rate Level ◽  
The Republic ◽  
Almost All ◽  
Near Future

The shifts that took place at the beginning of the 21st century in the global financial space have clearly demonstrated the great importance of monetary policy to ensure effective economic development. This is why successful international experience in the field of monetary policy implementation is of scientific interest in order to use it in national practice. The article analyzes the current practice of monetary policy in different countries on the example of the discount rate level. Chiefly the discount rate of such countries as the Republic of Belarus, the Russian Federation, the Republic of Poland, Hungary, the Kingdom of Norway, the Republic of Bulgaria, Germany, the Czech Republic and Canada is studied for the last 10 years. The article also examines the relationship between changes in the discount rate and the dynamics of loans in Germany, the Czech Republic and Canada. In addition, the dynamics of the discount rate is compared with the dynamics of inflation in the Czech Republic and Canada. As a result, the analysis has revealed that because of the coronavirus crisis, the central banks of almost all the surveyed countries lowered the discount rate level several times to support the national financial system and economy as a whole. Equilibrium in the banking system forms the basis to create general economic equilibrium, and this is primarily achieved by predictable, appropriate and effective instruments of the state’s monetary policy. Note that based on the processing statistics, it has been found that the stable level of the discount rate is typical for the Republic of Bulgaria and Germany. Thus, these countries have the least number of changes (one change) in the discount rate level from 2015 to 2020. In turn, Canada is characterized be a particularly frequent change in the discount rate level and ambiguous dynamics of lending. To sum up, forecasts of the level and dynamics of the discount rate in the studied countries for the near future are briefly highlighted.

Activity of modern right-wing radical parties in the Czech Republic

2019 ◽  
pp. 164-173
Author(s):  
Tetiana Fedorchak
Keyword(s):  
Czech Republic ◽  
Political Parties ◽  
European Integration ◽  
Democratic Party ◽  
Party System ◽  
Social Programs ◽  
Right Wing ◽  
The Czech Republic ◽  
Almost All ◽  
Political Radicalism

The author investigates political radicalism in the Czech Republic, a rather heterogeneous current considering the structure of participants: from political parties to the extremist organizations. The peculiarity of the Czech party system is the existence, along with typical radical parties, of other non-radical parties whose representatives support xenophobic, nationalist and anti-Islamic statements. This is primarily the Civil Democratic Party, known for its critical attitude towards European integration, and the Communist party of the Czech Republic and Moravia, which opposes Czech membership in NATO and the EU. Among the Czech politicians, who are close to radical views, analysts include the well-known for its anti-Islamic position of the Czech President M. Zeman and the leader of the movement ANO, billionaire A. Babich. Voters vote for them not because their economic or social programs are particularly attractive to the electorate, but because of dissatisfaction with the economic situation in the state. Almost all right populist parties oppose European integration, interpreting it as an anti-national project run by an elite distorted by a deficit of democracy and corruption. Keywords: Czech Republic, right-wing radical political parties, European integration, nationalism.

scholarly journals Strategic Challenges of Human Resources Allocation in Industry 4.0

Information ◽  
2021 ◽  
Vol 12 (3) ◽  
pp. 120
Author(s):  
Majid Ziaei Nafchi ◽  
Hana Mohelská
Keyword(s):  
Czech Republic ◽  
Human Resources ◽  
Industry 4.0 ◽  
Industrial Revolution ◽  
High Tech ◽  
Economic Sectors ◽  
The Czech Republic ◽  
Services Sector ◽  
Productivity And Competitiveness ◽  
Near Future

The emergence of the fourth industrial revolution (Industry 4.0, hereinafter I 4.0) has led to an entirely fresh approach to production, helping to enhance the key industrial processes and therefore increase the growth of labor productivity and competitiveness. Simultaneously, I 4.0 compels changes in the organization of work and influences the lives of employees. The paper intends to construct a model for predicting the allocation of human resources in the sectors of the national economy of the Czech Republic in connection with I 4.0. The model used in this research visualizes the shift of labor in the economic sectors of the Czech Republic from the year 2013 to the following years in the near future. The main contribution of this article is to show the growth of employment in the high-tech services sector, which will have an ascending trend.

scholarly journals Loose Monetary Policy and Corporate Investment of Manufacturing Firms in the Czech Republic

2018 ◽  
Vol 18 (4) ◽  
pp. 371-385
Author(s):  
Veronika Kajurová ◽  
Dagmar Linnertová
Keyword(s):  
Monetary Policy ◽  
Czech Republic ◽  
Interest Rates ◽  
Corporate Investment ◽  
Manufacturing Firms ◽  
Investment Activity ◽  
The Czech Republic ◽  
Low Interest Rates ◽  
Negative Effect

Abstract The aim of the paper is to evaluate the effects of loose monetary policy on corporate investment of manufacturing firms in the Czech Republic during the period between 2006 and 2015. The main focus of the paper is on the effect of low interest rates on investment activity of Czech firms; additionally, the effects of interactions between interest rate and other firm-specific variables are investigated. The results indicate that corporate investment is positively associated with firm size, investment opportunities, and long term debt. Also, a negative effect of the cash position is found. Further, the findings show that monetary policy is a significant determinant of firm investment activity: when the monetary policy is loose, investment is positively affected. Furthermore, differences in the determinants of investment between highly and low leveraged firms were revealed.

scholarly journals MONETARY POLICY OF THE REPUBLIC OF KAZAKHSTAN

2019 ◽  
Vol 7 (5) ◽  
pp. 103-110
Author(s):  
Ilyasova Gulmira Garifollaevna ◽  
Bekmukhametova Assemgul Bauirzhanovna
Keyword(s):  
Sustainable Development ◽  
Monetary Policy ◽  
Central Banks ◽  
Inclusive Growth ◽  
External Shocks ◽  
Credit Policy ◽  
Methodological Research ◽  
National Bank ◽  
The Republic ◽  
Near Future

Purpose: Currently due to Kazakhstan's high vulnerability to external shocks, Kazakhstan needs new growth factors to accelerate and provide more inclusive growth. The National Bank of Kazakhstan, as the central bank, is responsible for the development and implementation of state monetary and credit policy within the framework of powers provided by current legislation. Objectives of monetary policy are primarily carried out to achieve this goal. Restoration of trust to actions of economic authorities is possible only if a balanced and responsible policy, supported by concrete actions and results, is implemented. Methodology: This study provides a literature review of domestic and foreign authors, who conducted the study of monetary policy of Central Banks of countries in various aspects of international experience.  The study gives an analytical overview of the current monetary policy of the Republic of Kazakhstan. Main Findings: The study discusses the importance of Kazakhstan’s monetary-credit regulation as only by means of effective monetary policy state can mitigate economic crises, restrain inflation growth and stimulate investments in various sectors of country's economy. The studies are systematized theoretical and methodological research aspects of the monetary policy of Kazakhstan of which the conclusions and recommendations proposed to improve the economy of our country. Implications/Applications:  This suggests that we should work in the near future, look for drivers of growth, so as to ensure not just an anti-crisis manual management of the economy, but to enter the rails of sustainable development.

scholarly journals Comparison of effects of expansionary monetary policy in the Czech Republic and Slovakia

2020 ◽  
Vol 74 ◽  
pp. 04006
Author(s):  
Boris Fisera ◽  
Jana Kotlebova
Keyword(s):  
Monetary Policy ◽  
Czech Republic ◽  
Banking Sector ◽  
Open Economies ◽  
Balance Sheet ◽  
Bank Lending ◽  
Central Banks ◽  
Monetary Policies ◽  
The Czech Republic ◽  
Economic Developments

The ongoing process of globalization has affected the way the monetary policy is conducted – and this is especially the case of small open economies, where the economic developments are heavily affected by the developments abroad. Therefore, the aim of this paper is to investigate the effects of unconventional monetary policy in two very open economies – Slovakia and the Czech Republic in the post-crisis era – the two rather similar very open economies. We assess the effects of their monetary policies by estimating their impact on the banking sector in both countries. We employ two cointegrating estimators – DOLS and FMOLS, so that we can assess the dynamics of the relationship between the developments of main balance sheet items of the respective central banks and the aggregate bank lending to various sectors of the economy. We do find evidence that unconventional policies of both central banks did lift bank lending – with the effect being stronger in Slovakia and for the QE policies. In both countries, the effect was more pronounced for the bank lending to household sector – specifically on housing related loans. Finally, we do not find evidence that the increasing openness of these two already very open economies affected the transmission of monetary policies into the banking sector.

SWITCHING TO GOOD POLICY? THE CASE OF CENTRAL AND EASTERN EUROPEAN INFLATION TARGETERS

2019 ◽  
Vol 24 (8) ◽  
pp. 2104-2128
Author(s):  
Andrej Drygalla
Keyword(s):  
Monetary Policy ◽  
Czech Republic ◽  
Inflation Targeting ◽  
Dynamics Simulation ◽  
Output Volatility ◽  
The Czech Republic ◽  
Policy Regimes ◽  
Switching Dynamic ◽  
Dynamic Stochastic ◽  
Good Policy

The paper analyzes how actual monetary policy changed following the official adoption of inflation targeting in the Czech Republic, Hungary, and Poland and how it affected the volatilities of important macroeconomic variables in the years thereafter. To disentangle the effects of the policy shift from exogenous changes in the volatilities of these variables, a Markov-switching dynamic stochastic general equilibrium model is estimated that allows for regime switches in the policy parameters and the volatilities of shocks hitting the economies. Whereas estimation results reveal periods of high and low volatility for all three economies, the presence of different policy regimes is supported by the underlying data for the Czech Republic and Poland, only. In both economies, monetary policy switched from weak and unsystematic to strong and systematic responses to inflation dynamics. Simulation results suggest that the policy shifts of both central banks successfully reduced inflation volatility in the following years. The observed reduction in output volatility, on the other hand, is attributed more to a reduction in the size of external shocks.

scholarly journals Interest rates and prices causality in the Czech Republic – Granger approach

2009 ◽  
Vol 55 (No. 7) ◽  
pp. 347-356 ◽  
Author(s):  
J. Poměnková ◽  
S. Kapounek
Keyword(s):  
Monetary Policy ◽  
Czech Republic ◽  
Interest Rate ◽  
Interest Rates ◽  
Inflation Rate ◽  
Aggregate Demand ◽  
Real Economy ◽  
Investment Activity ◽  
The Czech Republic ◽  
The Interest Rate

Monetary policy analysis concerns both the assumptions of the transmission mechanism and the direction of causality between the nominal (i.e. the money) and real economy. The traditional channel of monetary policy implementation works via the interest rate changes and their impact on the investment activity and the aggregate demand. Altering the relationship between the aggregate demand and supply then impacts the general price level and hence inflation. Alternatively, the Post-Keynesians postulate money as a residual. In their approach, banks credit in response to the movements in investment activities and demand for money. In this paper, the authors use the VAR (i.e. the vector autoregressive) approach applied to the “Taylor Rule” concept to identify the mechanism and impact of the monetary policy in the small open post-transformation economy of the Czech Republic. The causality (in the Granger sense) between the interest rate and prices in the Czech Republic is then identified. The two alternative modelling approaches are tested. First, there is the standard VAR analysis with the lagged values of interest rate, inflation and economic growth as explanatory variables. This model shows one way causality (in the Granger sense) between the inflation rate and interest rate (i.e. the inflation rate is (Granger) caused by the lagged interest rate). Secondly, the lead (instead of lagged) values of the interest rate, inflation rate and real exchange rate are used. This estimate shows one way causality between the inflation rate and interest rate in the sense that interest rate is caused by the lead (i.e. the expected future) inflation rate. The assumptions based on money as a residual of the economic process were rejected in both models.

Development of Commercial Law in the Slovak Republic - Outline of problems

2016 ◽  
Vol 8 (1) ◽  
pp. 81-90
Author(s):  
Mojmír Mamojka ◽  
Jacek Dworzecki
Keyword(s):  
Czech Republic ◽  
Slovak Republic ◽  
Ancient Egypt ◽  
Legal Regulations ◽  
Independent State ◽  
The Czech Republic ◽  
Trade Law ◽  
The Creation ◽  
The Republic ◽  
The Government

The article concerns the issue of trade law in the context of its evolution and the current realities of its being in force in Republic of Slovakia. In the paper the authors present an historical view of the creation of legal regulations about trade from ancient times to present days. In the first part of the paper the political system and its components are discussed. The reader will be able to acquaint themselves with the functioning of the apparatus of executive power (the government and ministries), legislative power (the parliament consisting of 150 members) and judiciary (independent courts and prosecutors) in the Republic of Slovakia. Moreover, this part of the article provides information about practical aspects of the creation of selected components of the constitutional legal order (e.g. parliamentary elections). In the second part, the paper covers the evolution of trade law over the centuries, approaches to regulations in Mesopotamia, based on, inter alia, the Code of Hammurabi, and also in ancient Egypt and Greece. Tracing the development of trade law over the centuries, the authors also present the evolution of legal regulations in this field in the XIX century, with particular reference to France, Germany and Austria-Hungary (especially the territory which today forms the Czech Republic and the Slovak Republic). In the last part of the article, the forming of regulations of trade law in Czechoslovakia from 1918 and during subsequent periods which created the history of that country, to the overthrow communism and the peaceful division of the state in 1993 into two separate, independent state organisms – the Czech Republic and Slovakia - is approached.

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