The recent global financial crisis of 2007-2009 and the subsequent recession have prompted renewed interest into how banking regulation and fluctuations in the financial sector impact the business cycle. Using three different model setups, this thesis promotes a further understanding and identification of the various transmission channels through which regulatory changes and volatility in the financial system link to the real economy. Chapter 1 examines the effects of bank capital requirements in a simple macroeconomic model with credit market frictions. A bank capital channel is introduced through a monitoring incentive effect of bank capital buffers on the repayment probability, which affects the loan rate behaviour via the risk premium. We also identify a collateral channel, which mitigates moral hazard behaviour by firms, and therefore raises their repayment probability. Basel I and Basel II regulatory regimes are then defined, with a distinction made between the Standardized and Foundation Internal Ratings Based (IRB) approaches of Basel II. We analyse the role of the bank capital and collateral channels in the transmission of supply shocks, and show that depending on the strength of these channels, the loan rate can either amplify or mitigate the effects of productivity shocks. Finally, the impact of the two channels also determines which of the regulatory regimes is most procyclical. Chapter 2 studies the interactions between bank capital regulation and the real business cycle in a Dynamic Stochastic General Equilibrium (DSGE) framework with financial frictions, along with endogenous risk of default at the firm and bank capital levels. We show that in a model which accounts for bank capital risk and regulatory requirements, the endogenous risk of default produces an accelerator effect and impacts the loan rate and the real economy through multiple channels. Furthermore, the simulations illustrate that a risk sensitive regulatory regime (Basel II) amplifies the response of macroeconomic and financial variables following supply, monetary and financial shocks, with the strength of the key transmission channels depending on the nature of the shock. The impact of higher regulatory requirements (as proposed under Basel III) is also examined and is shown to increase procyclicality in the financial system and real economy. Chapter 3 studies the interactions between loan loss provisions and business cycle fluctuations in a Dynamic Stochastic General Equilibrium (DSGE) model with credit market imperfections. With a backward-looking provisioning system, provisions are triggered by past due payments (or nonperforming loans), which, in turn, depend on current economic conditions and the loan loss reserves-loan ratio. With a forward-looking system, both past due payments and expected losses over the whole business cycle are accounted for, and provisions are smoothed over the cycle. Numerical experiments based on a parameterized version of the model show that holding more provisions can reduce the procyclicality of the financial system. However, a forward-looking provisioning regime can increase or lower procyclicality, depending on whether holding more loan loss reserves translates into a higher or lower fraction of nonperforming loans.

The aim of this diploma paper is to describe the mortgage market in the Czech Republic. Firstly, I have analysed the general situation which is connected with the issue of providing the mortgage credit in the Czech Republic. The next point is the analysis of market of flats and support of the flat's market. One of this product is mortgage credit. I have analysed the main economic values such as mortgage credit, mortgage interest, classified mortgage credit, business cycle, etc. Especially I discussed the household sector because we can see the biggest growth there. Finally, I have compared the mortgage market in the Czech Republic, in the European Union and in the United States of America. The mortgage crisis in the USA is an ongoing economic problem and it caused a global financial crisis during 2007 -- 2008.

This diploma thesis -- Credit risk management and business cycle -- is divided in four chapters. The first explains the purpose of bank as the financial intermediate and the main financial risk, which may results from its activities. The second part describes the theory of business cycle from the view of the main economic schools and clears up the problems of price bubbles on assets markets. The third part analyses the models and methods of credit risk management in the financial institution and the roles of regulatory authorities including the influence of Basel II. The last part concerns about credit risk development in bank sector in the Czech Republic including the ČNB macroeconomic credit risk model. The main focus is how the changes in business cycle development influence the credit risk.

The paper examines the degree of convergence between the business cycles of the new EU member states and eurozone. This convergence is a necessary condition for a troublefree operation of a monetary union. Several analyses have been used to assess the problem -- pure time series correlation, correlation of detrended time series and of lagged series, and above all impulse-response functions correlation and forecast error variance decomposition. Finally, the paper briefly assesses the evolution of business cycles convergence.

As apparent from the name of my diploma thesis I am trying to find a relation between the political and the economical cycle in the Czech Republic. It is evident that the political events are motivated by the personal interests of the politicians to be re-elected. Also the development of the economy does not need to be spontaneous but influenced by the populist intentions. In the theoretical part I am trying to explain the relations between the political and the economical cycle and also the behaviour of several macroeconomic variables which I have chosen for the analytical part of my work. These are: GDP development, inflation, unemployment rate, social migration of the population, consumption and balance of the state budget. In the analytical part I am analysing the behaviour of the selected variables in the election period 1996-1998, 1999-2002, 2003-2006 and in the first two years of the postelection period 2007 and 2008. Based on the behaviour of the variables within the political cycle I am trying to find the possible reason of their development, whether it is a spontaneous process characterized by the current phase of the economical cycle or whether it is a result of the implemented populist measures.

The thesis analyses the rapid growth of indebtedness of Czech households, which have created concerns both among economists and general public. The thesis is aimed not only on development of indebtedness but also on causes of recent developments and structure of indebtedness. The thesis also deals with household savings, which are opposite of debts and according to neoclassical theory are the bottom line of economic growth. Main part of the thesis closely examines impacts of indebtedness upon Czech economy. It tries to describe and assess these impacts using economic theories, which are described in theoretical part of the thesis. International comparisons are an integral part of analysis, without them the analysis would be incomplete. The thesis uses up-to-date statistical data and widely used measures of indebtedness.

This thesis tries to describe origin of Icelandic crisis from 2008 and tries to explain whether it was caused by liberalisation of Icelandic market or by excessive monetary and fiscal interventions. Analysis of behaviour of free market subjects and analysis of policy of central bank and government couldn't clearly accept or reject the hypotheses that the crisis was caused by liberalisation. On the other hand the thesis sees chosen policy of government and central bank as a main contributor to the break out of the crisis. This assumption is in accordance with theoretical and practical study of most important monetary and fiscal interventions implemented in Iceland

The master's thesis critically analyses the works of John Maynard Keynes and Friedrich August von Hayek concering the explanation of business cycles based on monetary determinants. The analysis is primarily based on J. M. Keynes's Treatise on Money (1930) and Prices and Production (1935) author of which is F. A. Hayek. The thesis, on one hand, refutes the main explanation of the cause of business cycles of the Austrian business cycle theory and, on the other hand, it argues the imcompatibility of the main analytical tool of Treatise with the theory of innovation by J. A. Schumpeter.

Excessive lending activity of banks is considered to be one of the causes of the recent financial and economic crisis. The theme of this thesis is to evaluate the relation of credit and the business cycle in the euro area countries and explore the differences which have been among these countries recorded. The primary objective of this work is the analysis of the credit cycle in these countries and its develoment from 2000 to the present. The paper will address further the question of whether financial markets can create for themselves economic imbalances through endogenous credit "booms". First part will deal with the theory off business cycles, then with alternative approaches, namely the Financial Instability Hypothesis of Hyman Minsky and followed by the latest theoretical knowledge on the issue of credit cycles. The next part will focus on identifying and analysing factors playing the significant role in the development of the economy in the pre-crisis period. The following section will be devoted to the international comparison of the credit and business cycles in the euro area (selection of those states that were more resistant to crisis and those sensitive to the crisis). The conclusion will address some recommendations for the policies of central banks, which may in turn reduce the pro-cyclical effects of developing leverage.

stract Abstract The aim of this thesis is to compare the responses of the two largest economies in the world - the U.S. and the EU -- to economic, debt and financial crisis that began in 2007 on U.S. mortgage markets, respectively, confirm or disprove the hypothesis that the United States deal with the crisis better. For this purpose the thesis describes the causes and consequences of the crisis on which was applied measures at EU level and at the level of the USA. The list of these measures is also presented in the thesis. To decide whether the hypothesis is correct or not is at the thesis analyzed the impact of the measures implemented to both economics. This analysis is based on monitoring the development of statistical indicators of major macroeconomic aggregates - especially the GDP, unemployment and public debt, and quantification of bailouts for the financial sector. Based on the above analysis, the present work confirmed the hypothesis.