|
|
Central banking: political opportunism or economic necessity?
Donelle, Justin ; Cahlík, Tomáš (advisor) ; Hlaváček, Jiří (referee)
Throughout history, at multiple times, countries have implemented central banking systems by monopolizing currencies. The following study looks at key indicators such as bond yields, central bank legislation and free banking era legislation to identify whether changes were due to economic necessity or political opportunism on the part of politicians. The study will analyze 5 countries, most notably Australia, Sweden, Switzerland, United States and Scotland, all of which have had a free banking period and can shed some light on the topic of transition from a free banking system to a centralized monopoly. The comparison draws light on the diverse problems and challenges that arose, most notably finding that in the majority of cases, government intervention caused the banking system to become unstable and help governments to engage in large debt financing under the central banking era. Keywords: Free Banking; Rent-Seeking; Comparative Banking Systems; Central Banks; Political Economy of Monetary Institutions JEL Classification: B53, E02, E42, E44, F59, N13, N14, N11, N12, N21, N22, N23, N24
|
|
|
Central banking: political opportunism or economic necessity?
Donelle, Justin ; Cahlík, Tomáš (advisor) ; Hlaváček, Jiří (referee)
Throughout history, at multiple times, countries have implemented central banking systems by monopolizing currencies. The following study looks at key indicators such as bond yields, central bank legislation and free banking era legislation to identify whether changes were due to economic necessity or political opportunism on the part of politicians. The study will analyze 5 countries, most notably Australia, Sweden, Switzerland, United States and Scotland, all of which have had a free banking period and can shed some light on the topic of transition from a free banking system to a centralized monopoly. The comparison draws light on the diverse problems and challenges that arose, most notably finding that in the majority of cases, government intervention caused the banking system to become unstable and help governments to engage in large debt financing under the central banking era. Keywords: Free Banking; Rent-Seeking; Comparative Banking Systems; Central Banks; Political Economy of Monetary Institutions JEL Classification: B53, E02, E42, E44, F59, N13, N14, N11, N12, N21, N22, N23, N24
|
|
|
The future of central banking in the economic system of developed countries on a basis of evalution of the experience from the last decade
Vilt, Lukáš ; Ševčík, Miroslav (advisor) ; Munzi, Tomáš (referee)
Thesis is dealing with the development of the central banking on the basis of experience from the last decade. Hypothesis is the statement, whether the central banks of the developed economies are increasingly less capable of the effective reactions on the accelerating development of the global economy and their position in the money emission and regulation of the banking sector is and will be more and more weakened by the alternative banking and monetary systems. This hypothesis is successfully disproved because of the behavior of the four chosen central banks which are CNB, FED, ECB and BoJ. The main reason was an increase in their activities and interventions causing among others multiplication of their balance sheets. On the other hand the alternative in the free banking is further from the reality than before. Virtual currencies also did not show threatening growth of the national currencies substitution in the reference period. Thesis also provides insight into new and potentially new instruments of the central banks.
|
|
| |
|
|
Money, banks and competition
Haloun, Martin ; Žamberský, Pavel (advisor) ; Šaroch, Stanislav (referee)
This paper is concerned with theoretical assumptions and consequences of a free banking system. The main theme is critical inquire of Hayek`s notion of creating the system of free banks independent of central bank, which issue differentiated currencies. The main purpose of this system is to force the government institution to provide a currency more stable than it does now. However there are some crucial objections which target the possibility of operating such system in practice. The main theme is further widen by the question about fractional and full reserve banking. Based on the comparison of the different reserve system, there is a notion of a system combining both, but keeping them strictly separated. The foundation of the paper is analysis of money definition from the austrian school point of view. These arguments are applied to the inflation and deflation. The object of research are conditions of existence and consequences of both effects. The inflation analysis is used to describe current system of central institution and the net of commercial banks.
|
|
|
What is the Way to Price Stability: Centralization or Liberalization of Banking Sector
Koldus, Miroslav ; Kapinusová, Jana (advisor) ; Štěpánek, Pavel (referee)
This thesis seeks to find an optimal structure for the banking sector from the perspective of price stability, defined as monetary prices that reflect consumer preferences. By comparing the common characteristics of central and free banking theories, four key areas will emerge and will constitute a background for comparative analysis. The key argument in the analysis is a comparison of the relationship between money supply and the information capability of monetary prices across both theories. The result of this analysis will be four conditions for achieving price stability, which together will answer the primary question of this thesis: Which of the two concepts offers better guarantees for price mechanism functioning?
|
|
|
Free banking versus central banking
Žulavský, Jaroslav ; Vostrovská, Zdenka (advisor) ; Ježek, Tomáš (referee)
The objective of the Bachelor's thesis is to describe and to clarify the method of monetary policy management in using Free Banking as compared to the central banking. The introduction deals with the history of central banking stressing the history aspects of Bank of England. The theory part focuses then on the main topics, namely the aspects of use of the Free Banking within the actual economy policy. The history background of Free Banking is set in Scotland in the period from the end of the 17th Century to the first half of the 19th Century. The chapters on theory are followed by analytical part. The thesis will focus on the description of the Free Banking in the current environment. Advantages and drawbacks of Free Banking used in the monetary policies will be compared. The final objective of the thesis is to draw conclusions about the option to use the Free Banking within the Czech banking environment. Implementation efforts shall include also questions dealing with the potential advantages or problems of implementing Free Banking in the Czech Republic.
|
|
|
Central bank - advantages and risks of its independence
Čech, David ; Janáček, Kamil (advisor) ; Potužák, Pavel (referee)
This work is about central bank independence and about advantages and risks resulted from this position. The beginnig of the work is about history of central banking in the world and in our republic. The next capture is dedicated to the question of necessity of central banks and it uses especially the work of F.A.Hayek. It also describes his suggestion to implement the competition between private issuers of money. The last and the largest chapter is about central bank independence. After the definition of independence, there is a part concerned types of independence, mainly the legal and the actual one. The level of independence can be usually measured by few indexes. The way how to calculate them is also in the text of this work. Final part of the work is aimed on advantages and risks resulting from the independent status of central bank. The main advantage is represented by elimination of time inconsistency problem, on the other hand the main risk is the absence of responsibility of central bank for her policy.
|
guest ::
