Politicko-hospodářský cyklus v ČR

Abstract

The goal of this bachelor thesis is the application of the political business cycle theory on the political-economic environment of the Czech Republic. Theory of the political business cycle presumes that realized fiscal policy is influenced by the political cycle - government implements expansive fiscal policy in pre-election period and restrictive fiscal policy in the post-election period.

The first part of this thesis is focused on the theoretical background of the political business cycle, including a description of the standard models of the political business cycle and description of two fundamental economic policies – fiscal policy and monetary policy.

The second part is focused on the political-economic development of the Czech Republic, which also includes a description of the political environment of the Czech Republic.

In the final part of this thesis is in detail described the development of fiscal policy in the Czech Republic, as well as are applied knowledge from the theoretical part on the political-economic environment of the Czech Republic with the intention to determine whether the theory of political business cycle is also valid for the domestic environment.