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Monetary policy of Federal reserve system and the reaction of American stock markets during financial crisis in 2008
Novotný, Martin ; Titze, Miroslav (advisor) ; Zamrazilová, Eva (referee)
The main aim of this final thesis is to analyze unconventional monetary policy of American central bank, which has been implemented during financial crisis in 2008. Fed used extremely accommodative monetary policy to restore interbank liquidity and to stimulate the real economy. In theoretical part of this thesis is examined the liquidity trap. The thesis describes transmission mechanism of transferring Fed measures to financial markets and real economy as well. Practical part of the thesis analyzes further steps of Federal reserve system, which have been implemented when key interest rates have already been lowered near the zero bound. The thesis is finished by the evaluation of these steps of American monetary authority and behavior of US stock market, which has been directly stimulated and is currently reaching its all-time highs.
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Eurozone crisis and its parallel with japanese lost decade
Draisaitl, Michael ; Loužek, Marek (advisor) ; Titze, Miroslav (referee)
The thesis analyses problems of eurozone after the beginning of financial crisis in 2008, which continuously changed into economic and debt crisis. The thesis considers eurozone in aggregate and closer focuses on so called GIIPS (Greece, Ireland, Italy, Portugal, Spain) countries. Recent eurozone economic situation is compared to Japanese "lost decade" during 1990s, I seek for parallels and differences. Theoretical part shows approaches by economic schools to causes of cycle and to role of policymakers. Main challenges of fiscal and monetary policy are considered, specifically fiscal policy in time of high public indebtedness, monetary policy in liquidity trap etc. Applicative part considers causes of the economic situation at the beginning, more specifically devoted to balance sheets recession. Key part of the practical part it is analysis of applied fiscal and monetary policy, including helping efforts to financial system. Concluding remarks summarizes key understanding from the thesis, proposals are included and it is considered whether eurozone is going to follow Japanese path since 90's or not. It seems highly probable that eurozone is going to follow Japanese in terms of sluggish economic growth, parallels can be seen in weak impact of monetary policy in liquidity trap, but recommendations to fiscal policy from Japanese experience should be taken into account in very cautious way because of both specifics of eurozone and Japanese economy.
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The analysis of the benefits of the European Rating Agency
Vaňková, Jana ; Titze, Miroslav (advisor) ; Šimíček, Petr (referee)
The main aim of this diploma thesis is to analyze benefits of the establishment of the European Rating Agency. The partial aim is to determine the influence of the credit ratings on economics situation in selected European countries and to analyze problems of current credit rating industry. A slight impact of the credit ratings on the observed countries has been found by way of the analysis of evolution of the yields of ten-year government bonds and the prices of CDS contracts on these bonds. Non-perfect competition, weak transparency of the rating process and conflict of interest are considered as the most important problems of the credit rating agencies. By way of the analysis of the ability of the European Rating Agency to remove or at least to partially eliminate discussed problems has been found that the European Rating Agency would not be able to remove all problems of the credit rating industry. The uncertainty about the independence of the European Rating Agency is the biggest weakness of this agency. For this reason, we can't expect that the European Rating Agency would be able to make the credit rating process more efficient and improve the situation in the credit rating industry.
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Icelandic way out of crisis
Hendrych, Filip ; Jílek, Josef (advisor) ; Titze, Miroslav (referee)
This diploma thesis is focused on measures, which have been adopted in Iceland due to the crisis. The first part of the thesis follows up causes and a course of the Icelandic banking crisis in order to understand the situation which the Icelandic authorities had to respond. Subsequently there are outlined measures which are adopted and in the last part these measures are evaluated. Emphasis is placed on analysing the measures of capital controls, banking sector restructuring and fiscal consolidation. All measures have achieved their objectives and have had significant impact on current recovery. Therefore at the end of the thesis is discussed the possibility of these measures applicability in other countries.
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Analysis of the influence of monetary policy on the creation and course of speculative bubbles on the capital markets
Zajíčková, Tereza ; Titze, Miroslav (advisor) ; Loužek, Marek (referee)
This thesis deals with monetary policy from the point of view of its impact on the creation of speculative bubbles and presents the mechanism with which the central banks can, on a general scale, stimulate a significant increase in prices of assets which has no fundamental justification. The thesis analyses two selected speculative bubbles which preceded one of the deepest economic crises and confirms the significant influence of the expansionary monetary policy of The Fed on their creation. Attention is also paid to the measures implemented by The Fed in reaction to bursting of the pricing bubbles, which are very different in both cases of economic crisis.
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Efficiency of regulation models in financial markets in environment of monetary policy changes.
Stehlík, Jan ; Štekláč, Jiří (advisor) ; Titze, Miroslav (referee)
This paper examines models of supervision and regulation over the financial market and their impact on volatility of interest rates according to monetary policy changes. Its goal is to judge if some of these models aren't less effective and cause higher volatility and if the assumption of market stability is provided. It looks into monetary policy changes and their impact on financial market, interest rates and their development in time of these changes. It analyzes correlation of monetary policy and financial market and gives characteristics of each of regulation models. Using the method of graphical analysis, this paper compares reactions of short- and longterm interest rates (Treasury bills and 10years government yields) in relevant countries during monetary change applications. It examines also official offered rate and real interbank rate and its' spreads. As indicator of financial market stress is used Libor-OIS spread. It evaluates the influence of models used in different countries in each given situation.
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Analysis of Influence of European Sovereign Debt Crisis on Financial institutions
Byrtusová, Eva ; Jílek, Josef (advisor) ; Titze, Miroslav (referee)
Banking crisis and following sovereign debt crisis are the cause of some changes on the financial market. This thesis is mainly focused on the debt crisis and its impact on financial sector stability. Roots, consequences and probable solutions of the debt crisis are also examined. Among analysed solutions were included proposals for financial transaction tax, stability bonds and regulation under new concept of CRD IV, bail-in and federalization of the eurozone. Analysed are also ratings, fiscal policy and optimality of the euro currency areas and its impact on stability of financial institutions. According to results, some proposals could be contrary to each other if implemented in its present form. Or it can increase moral hazard of financial institutions. Another consequence is establishment of new regulations. On the other hand, positive is that financial institutions have endured the sovereign debt crisis.
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Impacts of credit risk transfer through credit derivatives on financial stability and the current world economy
Pozdníková, Magdaléna ; Jílek, Josef (advisor) ; Titze, Miroslav (referee)
The subject of this thesis is an analysis of causes and impacts of credit risk transfer through credit derivatives on the world economy. It deals with the theoretical view of credit derivatives and their definition. A significant part of the work is devoted to a description of the current credit derivatives market and to motives for trading them. In the continuous process of derivative products innovation selected types are described. Those types that were spread during last two decades. In another part are introduced credit derivatives market participants and special attention is given to the banking sector. Important part is the description of an economic situation in countries in crisis. The aim of this work is to give a complete description of all sectors that were influenced by credit derivatives market.
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Monetary policy in liquidity trap in Japan
Titze, Miroslav ; Janáček, Kamil (advisor) ; Pfeifer, Lukáš (referee)
Monetary policy in Japan is in a luquidity trap under convential monetary policy. Main source of deflation and stagnation of japanese economy is endogenous credit crunch. BoJ is not able to influence price level and economy by zero interest rate policy. Main cause of credit crunch is demand for credit because of high leverage of all sectors in economy. Credit crunch support financial problems on the supply side of the credit. Diploma thesis propose to use expansion fiscal policy as a convenient tool for resolution of japanese deflation and great stagnation. Expansion fiscal policy is effecient to overcome credit crunch and support economy and demand inflation throught restructuralization of balance sheets. Work considering current world debt crisis argue that expansion fiscal policy is the best solution to overcome debt crise.
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Relationship between public debt and current account of balance of payment in Slovakia
Titze, Miroslav ; Antoš, Ondřej (advisor) ; Vebrová, Ludmila (referee)
This bachelor work concern about wider economics circumstances of debting in Slovak republic after 1993. Main goal of the work is evaluate dependance between public deficit and current account of balance of payment. Work also consider evolution of public finance, deficit, public debt and their impact on loanable fund market, goods and services market and exchange market through which is influenced current account of balance of payment. Regression analysis based on simply linear regression by method of ordinary least squares doesn't confirm dependence of current account deficit on budget deficit. Linear regression refused close relationship between current account deficit and budget deficit. Evidence from Slovak republic experience is consistent with Ricardo-Barro approach to budget defict.
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