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The relationship of True Money Supply to the standard and alternative economic indicatators in the Czech republic
Lukáš, Matěj ; Svoboda, Miroslav (advisor) ; Šťastný, Daniel (referee)
The goal of this thesis is to test, whether the Austrian school monetary aggregate - True money supply (TMS) reaches a better mutual relationship with national income and inflation than the aggregate M2 used by the mainstream economics. The purpose of this test is the fact that according to the austrian economists TMS is supposed to be based on a coherent theoretical background, whereas M2 was created by using statistical methods. In order to reach a coherent comparison, monetary aggregates were tested not only with the standard aggregates -- GDP and CPI representing inflation, but also with the alternative aggregates coming from the theory of the Austrian school -- Gross Domestic Output and Composite Price Index. These aggregates were analyzed by the correlation, regressive and vector autoregressive analysis (VAR models). The results did not show a better relationship between TMS and the remaining macro-aggregates. However, the theoretical background of a indicator is crucial for the austrian economists, that is why this test does not prove any impropriety of the indicator but only it's worse practical utility.
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True Money Supply
Dufek, Michal ; Písař, Pavel (advisor) ; Czesaný, Slavoj (referee)
This thesis deals with the real money supply (True Money Supply). Monetary aggregates (M1, M2, M3) used in mainstream economics is that, in many respects inaccurate and therefore unsuitable. TMS monetary aggregates are preferable aggregates M1, M2, M3, because it counted some of the cash items twice, unlike M1, M2, M3, and therefore more accurately reflects the evolution in monetary economics. The aim of this work is based on established theory of money, count the real money supply (TMS1, TMS2) and investigate its characteristics and relationship with respect to selected economic indicators, which are: the monetary aggregate M2, the consumer price index (CPI), industrial producer price index (PPI), the discount rate, two-week repo rate, index of the Prague Stock Exchange (PX), the total volume of loans. Confrontation between TMS1 and TMS2 with selected economic indicators, can lead to a more accurate understanding of the causes of changes in the economy over the economic cycle. The theoretical part is to define the concept of money, creation, development, development of the banking system; commodity mode and paper (FIAT) money. The analytical part will try to uncover hidden phenomena and causal relationships between the real money supply and the development of the economy. The work is based on the methodology of the Austrian School of Economics, whose praxeologie seems to me the most because of its clarity and consistency. Without this theory, we could not understand the question: What else is money and what is not?
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