E52 - Monetary PolicyReturn

Using local projection (LP) method, we assess Credit Default Swap (CDS) changes in the Central-East European countries. Cost-risk optimization in public debt management refers on the fine-tuning the ratio of capital import and foreign currency denominated borrowing to domestic funds. Literature defines closeness centrality as an indicator which highlights the relative importance of an asset within a network, estimated by a quarterly minimum spanning tree graph. We show that CDS changes are driven not only by the foreign exchange shocks but also by foreign currency debt and funding as well as the closeness indicator which signs a network-bias. We also find evidence that relative isolation better describes the Czech sovereign debt market. Thus, this paper makes a new contribution to the debate of public debt funding strategies, while highlighting the importance of network-biases.

The paper aimed to make an analysis of the euro adoption process of Romania and its path to the exchange rate mechanism (ERM II). The research was conducted from the perspective of the actions taken at European level for the third round of enlargement of the euro area, with its structural risks and challenges. In developing the research, both nominal and real convergence criteria were taken into account in order to outline the general achievements of monetary and fiscal policies, emphasizing the need to find an optimal timing to join the Eurozone considering the balance between costs and benefits. The analysis of the fulfillment of the Maastricht nominal criteria showed, in the past, the illusion of short-term monetary integration, but the evolutions of the last two years raise serious questions regarding the capacity of the Romanian economy to align with the European level of monetary integration and highlight the gaps between Romania and euro area. By comparison, the attitude of the citizens, although more temperate in the context of the COVID-19 pandemic and the perspective of a new economic crisis, showed an optimism which, unfortunately, is not supported by the capacity of the Romanian economy to meet the accession conditions.

The aim of this paper is to make a comparison of the banking sector in the Czech Republic and United Kingdom. Selected banking sectors are compared according to independence of their central bank, the regulation and supervision of financial markets in these countries, the type of banking, financial institutions, inflation targeting, interest rates and capital adequacy. The banking sector in the Czech Republic and the United Kingdom are part of the European financial market. Yet they show differences that are caused by the historical development and the different position of central banks and their policy during financial crises. Comparison of banking systems and central banks is performed based on descriptive and measurable indicators. Selected central bank used unconventional monetary policy response to the challenges of the financial crisis. The biggest difference lies in the regulation of banking sectors monitored and used instruments of monetary policy in times of financial crisis and they differ also in the used models of banking systems.

The aim of this paper is to evaluate mutual interaction of fiscal and monetary policy in the Czech Republic and in Slovakia. The relationship - cooperation or conflict, are basic determinants of successful implementation for economic policy of the state. Fiscal and monetary policies have usually different aims and some conflict situations may arise. The game-theoretical approach is responsible for creating the theoretical model, which is then dealt with the empirical analysis by the method of the ordinary least squares. We find a stabilizing role of monetary policy in both countries and the dominant role of monetary policy in the Czech Republic.

This article discusses the credit risk, and ways in which it operates in conjunction with the business cycle, as well as the development of credit risk in credit dynamics in the course of the business cycle. Damping of the fluctuations in the credit dynamics in the course of the economic cycle is devoted to, for example, Frait, Komárková (2008). Models of bank financing of Czech corporations and credit risk is discussed in a study Grešl, Jakubik (2008). This article aims to combine these topics and focus on the development of credit risk and its changes over the business cycle. The main hypothesis of the work will be demonstrating the possible link with credit risk financing in various sectors during the phases of the business cycle. The main objective is the analysis of linkages making adjustments and business cycle, as well as analysis of the linearity of the volume of loans and the number of adjustments to individual types of loans.

The aim of the article is to analyse the influence of monetary policy on the competitiveness of a country understood as the ability of a country to sell its goods and services on the international markets. The monetary policy is represented by the key interest rate, the monetary aggregate M3 and until December 2008 also the exchange rate SKK/EUR. The Trade Covering Ratio stands for the indicator of national competitiveness (import covered by export). We have focused on the situation in the Slovak Republic. The analysis has been split into two periods. The period of January 2004 - December 2008 is connected with the preparation of the country for the entrance into the eurozone. The second examined period of January 2009 - December 2012 is the period after the euro adoption. Applied econometric analysis using the linear regression of time series has confirmed the statistical significance of the monetary policy effect on the competitiveness. The monetary aggregate and the exchange rate were significant factors before Slovakia joined the eurozone. Considerable difference between the floating exchange rates period and the period of the Slovak membership in the ERM II was not detected by the analysis. The interest rate has become the significant monetary instrument influencing the competitiveness in the period after the euro adoption.

This article deals with interest rates set up by the CNB and their relation to loan and economic activity. It shows complexity of economic systems where simple comparisons may give various numbers but principles stay the same. We have to take into account factors like economic stability, overall economic performance, sentiment and expectations. The monetary policy interest rates are not the only factor but definitely they have some power in the direction which is in line with basic economic laws and there are no data, logics, or nexuses denying this fact. The article comes to the conclusion that the Czech monetary policy is quite systematic and we cannot definitely talk only about the "interest rates - loans - economic activity" channel but it also works in an opposite direction, where the ČNB reflects economic activity in its decision making process when setting the interest rates.

Sustainable tourism development should be proposed and realised on the bases of monitoring its impacts, among them also tourism burden of a concrete region. Presented article deals with hiking and tourism burden in the protected landscape area Kokořínsko. Concretely the article analyses tourism supply and demand in the region and further monitors the burden of hiking trails. To monitor the burden of hiking trails the GIS (geographical information systems) are used, as new methods for evaluating tourism impacts in the Czech Republic.