This thesis deals with CNB foreign-exchange intervention from November 2013 in context of assumptions and impacts on the Czech economy. The theoretical part presents important monetary policy aspects, from conventional and unconventional tools to inflation targeting and deflation, to understand theoretical framework of analysis. Analytic part takes a look on Czech economy condition before interventions, especially inflation. Intervention impacts and exit strategies are examined further. Based on the analyzed data this thesis concludes that foreign-exchange interventions by Czech National Bank were not necessary and inevitable action.

The aim of this paper is to examine the striking inverse co-movement of decreasing inflation rates and increasing degree of globalization in developed economies during the current wave of globalization beginning in the 1980s. Our analysis stands on theoretical identification of channels through which globalization affects inflation in developed economies and the role of monetary policy in the process. Econometric estimation of the impact of advancing globalization on the rate of inflation carried out on a sample of high-income OECD countries over the years 1980 - 2013 supports our hypothesis that advancing globalization has a significant negative impact on the rate of inflation in advanced economies.

Deflation, which has recently represented significant source of concern, is by many economists perceived to be an unfavorable phenomenon in the economy. The aim of this paper is to identify the possible link between deflation and economic downturn based on the comprehensive view. The emphasis is put on the analysis of historical episodes of deflation over the past two centuries in order to shed light on causes and impacts of deflation during the periods. The paper does not neglect the comparison of theoretical approaches. The results of the analysis, supported by empirical studies, imply that the relationship between deflation and recession is complex. Although the paper does not confirm the existence of a general link between deflation and recession, it reveals that recession often leads to deflation (especially in a low inflation environment), but deflation does not usually result in recession. In many cases deflation remains to be a symptom of economic problems, not their cause.

Ordinary differential equations (ODEs) play an important role in mathematics. Although intrinsically, the setting for describing ODEs is the continuous framework, where differential operators are considered as maps from one function space to another, common numerical algorithms for ODEs discretise problems early on in the solution process. This thesis is about continuous analogues of such discrete algorithms for the numerical solution of ODEs. This thesis shows how Newton's method for finite dimensional system can be generalised to function spaces, where it is known as Newton-Kantorovich iteration. It presents affine invariant damping strategies for increasing the chance of convergence for the Newton-Kantorovich iteration. The derivatives required in this continuous setting are Fréchet derivatives, the continuous analogue of Jacobian matrices. In this work, we present how automatic differentiation techniques can be applied to compute Fréchet derivatives. We introduce chebop, a Matlab solver for nonlinear boundary-value problems, which combines damped Newton iteration in function space and automatic Fréchet differentiation. By proving that affine operators have constant Fréchet derivatives, it is demonstrated how automatic linearity detection of computed quantities can be implemented. This is valuable for black-box solvers, which can use the information to determine whether an iteration scheme has to be employed for solving a problem. Like nonlinear systems of equations, nonlinear boundary-value problems can have multiple solutions. This thesis present two techniques for obtaining multiple solutions of operator equations: deflation and path-following. An algorithm combining the two techniques is proposed.

In January 2013, the Japanese Government under Prime Minister Shinzo Abe and the Bank of Japan launched a package of monetary and fiscal stimulus along with promises of structural economic reform called Abenomics. This paper examines the preliminary effects of the Bank of Japan’s Quantitative and Qualitative Monetary Easing (QQE), which forms the monetary component of Abenomics. Given the weak economic response to QQE so far, the study predicts that QQE has failed to make a significant impact on its target macroeconomic variables of inflation and output. The results confirm this hypothesis as increases in the monetary base have an insignificant effect on the Consumer Price Index and have little effect in changing the trajectory of output. The results of QQE so far mirror those of the Federal Reserve’s quantitative easing programs, during which expansion of the monetary base in the aftermath of the 2008 financial crisis failed to significantly raise output given the size of the stimulus. Abenomics, however, continues to be implemented, making the results presented in this paper inconclusive.

Many countries in the world experience demographic transition - significant decrease of fertility rates and increase share of the old population. The pace and characteristics of demographic shifts however are individual for each country. At the same time these countries face low inflation rates or even deflation. In this thesis I demonstrate how demographic changes are correlated with low inflation rates. I estimated two different models - VAR and FEM for panel data using two samples of developing countries. The primary argument of using two separate groups for estimating the same problem is robustness check, whether all three imposed hypotheses will hold in any sample of the population. These hypotheses are - first, deflation is positively correlated with increased share of the old population, second, low inflation in developing economies has structural pattern due to demographic changes and third, deflation can be forecastable if it is driven by demographic trends. Despite the heterogeneity of the results from PVAR and FEM, a negative impact of aging population on inflation has been proved. Also estimation results support our two hypotheses that low inflation if it is partially driven by aging structure changes, has structural rather than cyclical characteristics and is predictable. Contribution...

The thesis aims to explain different theoretical approaches to definition of deflation, categorize deflation, define positive and negative connotations typical for each economical school, define the role of monetary policy in relation to price stability and monetary instruments with an emphasis on unconventional. The last part applies theoretical knowledge on Swiss situation, describes the interventions between years 2009 and 2016 and presents their initially predicted and subsequently real, graphically illustrated impact on economy. The theoretical part of diploma concludes that mainstream economy perception is the most suitable for definition of deflation, therefore perceive it as a negative phenomenon and calls for elimination. Each step of SNB monetary policy was controversial. The author opens the question of the necessity of intervention from 2009, explains the reasons of SNB steps from 2011 and exit strategy from 2015. However, the author do not forget on negative connotations. In the final part, thesis outlines the most discussed topics raised by Swiss interventions and opens the topic of negative rates as unconventional monetary instrument.

The thesis deals with a monetary phenomenon of price deflation. In modern monetary theories, causes are sometimes confused with consequences. As to price deflation, consequences of causes of this phenomenon are often attributed to it while it is not a cause but a mere consequence. That's why we have identified causes of price deflation and their true consequences in the thesis. According to quantity theory of money, there are three main sources of price deflation as follows: decline in money supply, decline in velocity of circulation of money, and productivity growth. These causes are analyzed in detail, each of them in a single chapter. Price deflation is often associated with depressions while in some cases it might be a mere consequence of depression, not a cause. On the other hand, price deflation might also be a consequence of productivity growth (unless accommodated by increase in money supply) which makes it perfectly compatible with a healthy and growing economy.

This thesis aims at currency interventions executed by Czech and Suisse central bank and their following comparison. Currency interventions became lately monetary instrument that both central banks adopted. Effect of intervention on real economic situation in both countries will be content of this thesis. Because of the scale off the interventions, this issue is still current and it is still publicly debated. First part of this thesis introduces systems of exchange rate arrangements and describes the role of central bank. Second part of this thesis deals with currency interventions in Czech Republic and focuses on intervention impacts on real economics. Third part is devoted to Suisse currency intervention.

Hereby presented Master Thesis deals with an analysis of preparedness of the Russian monetary policy for adoption of inflation-targeting regime. We define the impact of different factors on the level of inflation and consequently their importance in the process of predicting inflation in the period from January 2006 to September 2012 in the Russian Federation. The selection of the factors is based on theory and on the examination of the Russian monetary policy environment, taking into account the credibility, transparency and accountability of the monetary institutions and the financial sector and real economy specifications. The analysis of interconnections among the factors is based on a vector autoregressive regression model VAR(4) as well as on Granger causality test and impulse-response analysis. Our results indicate that the major role in inflation formation among the chosen variables, the exchange rate prevailed in the observed period and the interest rate gained in importance to certain extent. Thus the Russian Central Bank has proceeded to prepare the monetary policy rule for the adoption of inflation-targeting regime. Nevertheless, building more sound monetary and financial institutions, successful implementation of flexible exchange rate and abandoning exchange rate targeting, as...