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Legal and Economic Aspects of the Entry of the Czech Republic into the Euro Area
Žáček, Ondřej ; Vybíral, Roman (referee)
Legal and Economic Aspects of the Entry of the Czech Republic into the Euro Area Abstract The thesis answers a number of questions related to the entry of the Czech Republic into the euro area. The basic premise is that joining the euro area does not consist only in changing of the national currency, but it must be perceived more comprehensively as a transition to the third stage of the Economic and Monetary Union which has been undergoing dynamic development at the institutional level. The main conclusions of the thesis are as follows. The traditional Maastricht convergence criteria, as they are explicitly formulated in primary law, cannot be regarded as the sole conditions for entry into the euro area. Non-legal aspects are also relevant when the fulfilment of these criteria is assessed by the European Commission and the European Central Bank. In addition, several new institutions such as the Banking Union or the European Stability Mechanism have been established in the euro area, but are not taken into account by the Maastricht convergence criteria. This also confirms that entry into the euro area cannot be reduced to a mere change of the national currency. Another important conclusion is that entering the ERM II exchange rate mechanism, which is necessary to meet one of the convergence criteria, is not...
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Legal and Economic Aspects of the Entry of the Czech Republic into the Euro Area
Žáček, Ondřej ; Kohajda, Michael (advisor) ; Karfíková, Marie (referee) ; Papoušková, Zdenka (referee)
Legal and Economic Aspects of the Entry of the Czech Republic into the Euro Area Abstract The thesis answers a number of questions related to the entry of the Czech Republic into the euro area. The basic premise is that joining the euro area does not consist only in changing of the national currency, but it must be perceived more comprehensively as a transition to the third stage of the Economic and Monetary Union which has been undergoing dynamic development at the institutional level. The main conclusions of the thesis are as follows. The traditional Maastricht convergence criteria, as they are explicitly formulated in primary law, cannot be regarded as the sole conditions for entry into the euro area. Non-legal aspects are also relevant when the fulfilment of these criteria is assessed by the European Commission and the European Central Bank. In addition, several new institutions such as the Banking Union or the European Stability Mechanism have been established in the euro area, but are not taken into account by the Maastricht convergence criteria. This also confirms that entry into the euro area cannot be reduced to a mere change of the national currency. Another important conclusion is that entering the ERM II exchange rate mechanism, which is necessary to meet one of the convergence criteria, is not...
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Does Euro Adoption Reduce Central Bank Staff?
Žídeková, Lucia ; Havránek, Tomáš (advisor) ; Fanta, Nicolas (referee)
The thesis examined the impact of euro adoption and joining the EU's Exchange Rate Mechanism (ERM II) on central bank staff using the synthetic control method. The first part of the work focused on assembling a data set on personnel development and proposing predictors for approximating central bank size. In the second part, the study presents the models and results, revealing a significant decrease in the number of employees at Latvijas Banka after joining ERM II. However, the research encountered limitations due to data unavailability, possible shocks experienced by donor pool countries, and poor fit of pre-intervention characteristics, leading to ambiguous findings regarding the size and significance of the negative effect of euro adoption on personnel development for Latvijas Bank, the National Bank of Slovakia, and Eesti Pank. The reliability of the results for the National Bank of Belgium and the Bank of Finland was affected by a short pre-intervention period and the risk of over-fitting.
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Czechia's Choice: Would Euro Make a Difference?
Trubelík, Ivan ; Baxa, Jaromír (advisor) ; Dědek, Oldřich (referee)
Euro adoption constitutes a major step in the economic integration within the European Union. The aim of this work is to quantify the effects it would have on the Czech Republic should it join the Euro Area at various dates in the recent past. Employing a Global VAR model to make unconditional and conditional counterfactuals of the 29 modeled economies, the probabilities of a higher real output and of lower prices are estimated. The results suggest that, from the viewpoint of the Czech Republic, entering the Eurozone during the financial crisis of 2009 would deteriorate both the recession as well as the deflation. On the other hand, the most favorable entry date was estimated to be the beginning of 2020 with very high probabilities of a larger real output after a few initial periods of a slower growth. The Euro adoption thus appears to be an economic decision with benefits materializing in the longer term rather than an opportunity for an immediate stimulus. JEL Classification C32, C53, C54, C55, E52, F45 Keywords Euro Adoption, Global VAR, Probabilistic Fore- casting Title Czechia's Choice: Would Euro Make a Differ- ence?
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The Evolution of Optimum Currency Area Index: Post-crisis Perspective
Kadlecová, Pavlína ; Horváth, Roman (advisor) ; Geršl, Adam (referee)
This paper estimates the determinants of exchange rate variability for 21 developed economies in 1980-1998. The results show that traditional criteria implied by the optimum currency area (OCA) theory, such as business cycle synchronisation, trade linkages and economy size, determine to a large extent bilateral exchange rate variability. Using the ordinary least squares estimation, we compute OCA indices for European economies vis-à-vis Germany and identify countries showing consistently large or little signs of convergence. We find that since 1998, most European developed economies have converged to Germany whether or not they are using the euro, suggesting that structural similarity is not driven solely by monetary integration. Our results from the model estimated by the generalized method of moments suggest that two additional criteria reflecting labour market flexibility and private credit growth are significant in explaining the exchange rate variability and lead to a ranking of countries different from the traditional approach. We find a positive relationship between the OCA indices and GDP decline during the economic crisis of 2008-09, which further supports the view that the OCA index is a useful indicator of the candidates' readiness to join the Euro Area. We apply the results to the...
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The Impact of Euro Adoption on Competitiveness: The Comparison of Czech Republic and Slovakia
Polyák, Oliver ; Dědek, Oldřich (advisor) ; Martišková, Monika (referee)
Bibliographic citation POLYÁK, Oliver (2013). The impact of Euro Adoption on Competitiveness: The comparison of Czech Republic and Slovakia. Prague, 2013. 74 p. Rigorous thesis (PhDr.) Charles University in Prague, Faculty of Social Sciences, Institute of Economic Studies. Rigorous thesis supervisor prof. Ing. Oldřich Dědek, CSc. Abstract The present rigorous thesis is focused on the impact of introducing the common European currency on competitiveness of a country. There has been a lot written about the possible effects of euro adoption on economies of the first eurozone participants. The contribution of this thesis is that we explore the impact of euro introduction on competitiveness of Slovakia, in comparison to the Czech Republic which still uses its own national currency. Our findings suggest that most of the analyzed competitiveness indicators evolved largely in parallel in both countries. Positive trade effects brought about by the introduction of the euro are rather moderate - up to 5%. Slovak credit development was more favorable during the crisis, reflecting lower interest rates in eurozone. On the other hand, high contributions to European stabilization funds may hamper Slovak economic growth and negatively influence country's competitiveness in future. Keywords competitiveness, euro adoption,...
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Czech Republic, Slovakia, and the monetary integration in the EU
Bendl, Ondřej ; Karlas, Jan (advisor) ; Jeřábek, Martin (referee)
This diploma thesis focuses on the process of euro adoption in the Czech Republic and Slovakia. Regarding the time frame, it mainly covers a period of 2004-2014. Nevertheless in order to maximise plausibility of results, this thesis focuses on relevant moments beyond the above mentioned period as well. The main aim of this thesis is to analyse a variation in the relationship of both examined countries towards the process of European monetary integration. Whereas Slovakia joined the Eurozone in 2009, the Czech Republic has not fulfilled its obligation stemming from the EU membership yet. The secondary aim of this thesis is to verify the power of IR theories dealing with transfer of sovereignty on the supranational level. Thus, this paper strives to identify whether the constructivist or rationalist (for the purposes of this thesis represented by ideational liberalism and commercial liberalism / liberal intergovernmentalism) theoretic paradigm is more accurate in its attempt to explain the examined variation. In order to fulfil this aim, methods of difference and congruence are applied. However, each of these methods shows different results. According to the method of difference, an explanation based on commercial liberal / liberal intergovernmentalist logic of economic-materialistic consequences may...
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The Impact of Euro Adoption on Competitiveness: The Comparison of Czech Republic and Slovakia
Polyák, Oliver ; Dědek, Oldřich (advisor) ; Martišková, Monika (referee)
Bibliographic citation POLYÁK, Oliver (2012). The impact of Euro Adoption on Competitiveness: The comparison of Czech Republic and Slovakia. Prague, 2012. 71 p. Master thesis (Mgr.) Charles University in Prague, Faculty of Social Sciences, Institute of Economic Studies. Master thesis supervisor prof. Ing. Oldřich Dědek, CSc. Abstract The present master's thesis is focused on the impact of introducing the common European currency on competitiveness of a country. There has been a lot written about the possible effects of euro adoption on economies of the first eurozone participants. The contribution of this thesis is that we explore the impact of euro introduction on competitiveness of Slovakia, in comparison to the Czech Republic which still uses its own national currency. Our findings suggest that most of the analyzed competitiveness indicators evolved largely in parallel in both countries. Positive trade effects brought about by the introduction of the euro are rather moderate - up to 5%. Slovak credit development was more favorable during the crisis, reflecting lower interest rates in eurozone. On the other hand, high contributions to European stabilization funds may hamper Slovak economic growth and negatively influence country's competitiveness in future. JEL Classification F14, F15 Keywords...
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The impact of national identity on Czech position towards European integration
Kim, Min Sun ; Martinková, Viera (advisor) ; Jeřábek, Martin (referee)
The Czech Republic has been regarded as a little troublemaker of the EU due to its Eurosceptic stances. This phenomenon was distinct in the 2000s regardless of the state's position, whether it was just an EU candidate or already a member state. Around the time, President Vacláv Klaus and his political party (ODS), as Czech leadership, contributed to promoting the Eurosceptic governments towards the EU. It could be seen as strange that such a trait was revealed both in the midst of preparations to join the EU and after its accession when it is the proper time to present a cooperative attitude. Thus, this thesis speculates that the skeptical national identity of the Czech Republic has been constructed throughout history, particularly about 450 years from the Bohemia Kingdom to Czechoslovakia (1525~1971), and affected then Czech domestic politics to formulate the official Eurosceptic positions towards the several EU integration matters (constitutional, security, and monetary integrations). In this context, this master's thesis aims to find an objective correlation that Czech identity had an influence on then Czech Euroscepticism. This way, this thesis expects to advance knowledge concerning Czech identity and its relevance to European politics.
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