Interakce monetární a fiskální politiky v České republice

Abstract

This thesis analyzes the mutual interaction of monetary and fiscal policy in the Czech republic. For the monetary authority in this thesis, the Czech national bank is chosen and the government for the fiscal authority. Mutual cooperation or non-cooperation of both policies can have an impact on the country's economic development. Optimal economic policy setting and consistency between monetary and fiscal policy is one of the main assumptions of the state's economic stability and its long-term development. The aim of the thesis is to evaluate the interaction of fiscal and monetary policy in the territory of the Czech Republic. A regression analysis method is used for this evaluation. The thesis shows that that even in one period there was no interaction between the two policies, which would lead to the promotion and strengthening of the effects of measures taken by one of the economic and political institutions. In the reporting period, the central bank implemented a stabilization policy and dampened fiscal expansion by raising its interest rates, responding to increased expected inflation. In contrast, fiscal policy did not take the form of a stabilization policy. In the Czech Republic, the dominant position is monetary authority, which does not adapt its behavior to the government.