|
|
Deflation: the Austrian School Perspective
Řepík, Martin ; Havel, Jan (advisor) ; Chytil, Zdeněk (referee)
Deflation, today understood mainly as a decrease in price level, is in the eyes of the mainstream economists the threat and danger of the economic development. This view is based on the experience from the Economic Crisis between 1929 and 1933 and later development in Japan. Therefore, the price stability is nowadays comprehended as a non decline in price index; monetary policy actually states the sustainable increase as a goal. The Austrian School of Economics uses the original definition of the words inflation and deflation and defines them as the increase and decrease of money supply. Modern interpretation of these terms means for them a dangerous misunderstanding whose result is misapprehension of causal connections between individual phenomena. This leads not only to incorrect conclusions but, above all, to disruption of the economic system, price and production structure, and development of economic cycles caused by artificial increase in money supply, which brings profit to certain groups.
|
|
|
Has got joining the monetary union influence on price level development?
Kloz, Ondřej ; Mičúch, Marek (advisor) ; Potužák, Pavel (referee)
This bachelor thesis answers the question, whether joining the European monetary union and adopting the common currency euro has influence on price level development. The main idea is based on the loss of ability to adjust competitiveness of the country through the nominal exchange rate. In that situation, every country is forcing to reach the real appreciation or depreciation by change of price level. Consequences of this change are the most obvious at the beginning of the economic crisis in 2007. Core of this thesis consists to research of aggregated and disaggregated price development, which refers to continuous harmonization of price growth, but it also refers to large disharmony of economic development of less developed countries in monetary union. In last part we are concerned with competitiveness development, which confirms delayed impact of price level, but it confirms also significant loss of competitiveness of fast converging members of the monetary union.
|
|
|
Did Hayek repudiate his own theory of business cycle?
Komrska, Martin ; Potužák, Pavel (advisor) ; Svoboda, Miroslav (referee)
This bachelor thesis answers the question, whether F. A. Hayek repudiated his own theory of business cycle by abandoning his previous criticism of stabilization of the price level. This paper introduces Hayek's business cycle theory as the part of the positive theoretical analysis, so its conclusion does not have to be also proposal for monetary policy. Hayek perceives money neutrality as a theoretical ideal, which cannot be achieved in the real world. Later, he also introduces an alternative aim of monetary policy -- the stability of the purchasing power of money. The publication Denationalisation of Money is an instruction for achieving this goal and so it is not in conflict with Hayek's business cycle theory. The relation between stability of purchasing power and smooth progress of the economy is substitutional and only competition among currencies will show, what type of mix do people prefer. Hayek's later declaration signifies that his business cycle theory is not able in itself to explain disasters such as the Great Depression.
|
|
|
Slovania and Slovakia - Analysis of entry to the eurozone with focus on price level
Kadlec, Martin ; Maleček, Petr (advisor) ; Bydžovský, Jiří (referee)
This bachelor thesis is concerned with the price level and its progress after entry to the eurozone. In each country entry into the eurozone is linked with the concerns about spontaneous price increase. This thesis discusses whether this concern is justified and tries to quantify any price increase associated with entry to the monetary union. It maps the preparation and accession of the two countries of post-Communist bloc, Slovania and Slovakia, into the eurozone and analyzes the particular steps, which both countries were using to avoid the spontaneous price increase. Then, the thesis quantifies the impact of the monetary union to the countries price level using a linear regression model built on the basis of time series. In the end, the thesis comes to a finding, that there is no sense to be extremely concerned about the entry to the eurozone.
|
|
|
The entry of the Czech Republic to the ERM II and expected impacts on the price level
Kulířová, Petra ; Maleček, Petr (advisor) ; Chytil, Zdeněk (referee)
This work deals with the entry of the Czech Republic to the Exchange Rate Mechanism and an evaluation of impacts, primarily on the price level which comes out from the membership of ERM II. After that it focuses on the history of mechanism ERM II and its basic characteristics. This paper also discusses the view of the state, which is now a part of this mechanism. It's trying to describe possible risks that can occur if the Czech Republic enters to this mechanism of fixed rates with narrow exchange rate fluctuation zone.
|
|
|
The Phenomenon of Deflation - Is It Really a Negative Effect?
Braunová, Veronika ; Munzi, Tomáš (advisor) ; Potužák, Pavel (referee)
The bachelor thesis investigates two divergences of opinion on the problem of deflation and tends to the side of Austrian economic school which deals with original conception. Deflation according to them means drastic decline of money supply or volume of expenditures in the economy. By disagreement with the modern concept of deflation are displaced the most famous myths connected with deflation (for example, increase in unemployment rate). Deflation is divided in several types, whereas in negative sense can be comprehended only one of them. Next is proved the inefficiency of implementing antideflationary policy which should fight against the deflation and restore inflation in economy. On the basis of research on deflation during The Great Depression was found to be deflation only a consequence of the crisis, not causation. As the causation was determined regulation of market during the period of the presidency of Hoover and Roosevelt. In conclusion new knowledge was used for the explanation of current financial crisis from which was indicted government and central banks.
|
guest ::
