This paper estimates the determinants of exchange rate variability for 21 developed economies in 1980-1998. The results show that traditional criteria implied by the optimum currency area (OCA) theory, such as business cycle synchronisation, trade linkages and economy size, determine to a large extent bilateral exchange rate variability. Using the ordinary least squares estimation, we compute OCA indices for European economies vis-à-vis Germany and identify countries showing consistently large or little signs of convergence. We find that since 1998, most European developed economies have converged to Germany whether or not they are using the euro, suggesting that structural similarity is not driven solely by monetary integration. Our results from the model estimated by the generalized method of moments suggest that two additional criteria reflecting labour market flexibility and private credit growth are significant in explaining the exchange rate variability and lead to a ranking of countries different from the traditional approach. We find a positive relationship between the OCA indices and GDP decline during the economic crisis of 2008-09, which further supports the view that the OCA index is a useful indicator of the candidates' readiness to join the Euro Area. We apply the results to the...

The main goal of this thesis is to analyze the topic of the endogeneity of OCA criteria with the focus on the Euro area and simulate the adoption of Euro in Czech Republic. The paper is organized as follows. Firstly the theory of the Optimal Currency Area (OCA) and the comparison of the costs and benefits of currency union are explained. In next chapter the literature review is given. The most important and most recent studies dealing with the shock asymmetry and integration, eastern enlargement of European Union and the endogeneity hypothesis are presented. In the fourth chapter the Euro adoption in Czech Republic is simulated. According to studies handling with the Euro introduction the expectations of the impact of Euro adoption in the Czech economy are presented. The fourth chapter includes the description of the data, the model and results.

This master thesis deals with the euro adoption in the Czech Republic, comparing the possible effects of the euro adoption on the Czech economy and consequences of currency changeover after the Slovak Republic joined the eurozone in 2009. After introducing the theoretical concepts inevitable for the euro adoption, the process of preparation for the currency changeover in the Slovak Republic and the currency changeover itself will be described. Subsequently, the work focuses on the conditions which the Czech government has already met in the process of preparation for the euro adoption and which still need to be fulfilled. In addition, the Czech Republic's economic alignment with euro area countries is analyzed, especially focusing on particular areas. A significant part of this work deals with the comparison of positive and negative effects of the euro adoption in the Slovak Republic with possible impacts of euro on the Czech Republic. In the end, the emphasis is put on the strength of the Czech economy to deal with the possible future financial crisis.

This graduation theses seeks to analyse expected gains arising from adoption of Europe's single common currency,costs of such adoption and potentional risks.Conception of this analysis is based on the Theory of Optimal Currency Areas alongside empirical studies regarding the same matter. The first chapter summarizes the historical development of european monetary integration and the position of euro in the world monetary system. The second chapter is devoted to the principles of the Theory of Optimal Currency Areas and the asymmetric shocks. The requirements of the Theory of Optimal Currency Areas are tested on the example of the current member states in eurozone. The following two chapters describe expected economic gains and costs connected with the membership of the Czech Republic in eurozone. The last chapter considers possible ways of determining the most suitable timeframe for entrance of the Czech Republic into eurozone.

This diploma thesis focuses on the process of euro adoption in the Czech Republic and Slovakia. Regarding the time frame, it mainly covers a period of 2004-2014. Nevertheless in order to maximise plausibility of results, this thesis focuses on relevant moments beyond the above mentioned period as well. The main aim of this thesis is to analyse a variation in the relationship of both examined countries towards the process of European monetary integration. Whereas Slovakia joined the Eurozone in 2009, the Czech Republic has not fulfilled its obligation stemming from the EU membership yet. The secondary aim of this thesis is to verify the power of IR theories dealing with transfer of sovereignty on the supranational level. Thus, this paper strives to identify whether the constructivist or rationalist (for the purposes of this thesis represented by ideational liberalism and commercial liberalism / liberal intergovernmentalism) theoretic paradigm is more accurate in its attempt to explain the examined variation. In order to fulfil this aim, methods of difference and congruence are applied. However, each of these methods shows different results. According to the method of difference, an explanation based on commercial liberal / liberal intergovernmentalist logic of economic-materialistic consequences may...

The Czech Republic has been regarded as a little troublemaker of the EU due to its Eurosceptic stances. This phenomenon was distinct in the 2000s regardless of the state's position, whether it was just an EU candidate or already a member state. Around the time, President Vacláv Klaus and his political party (ODS), as Czech leadership, contributed to promoting the Eurosceptic governments towards the EU. It could be seen as strange that such a trait was revealed both in the midst of preparations to join the EU and after its accession when it is the proper time to present a cooperative attitude. Thus, this thesis speculates that the skeptical national identity of the Czech Republic has been constructed throughout history, particularly about 450 years from the Bohemia Kingdom to Czechoslovakia (1525~1971), and affected then Czech domestic politics to formulate the official Eurosceptic positions towards the several EU integration matters (constitutional, security, and monetary integrations). In this context, this master's thesis aims to find an objective correlation that Czech identity had an influence on then Czech Euroscepticism. This way, this thesis expects to advance knowledge concerning Czech identity and its relevance to European politics.

Diploma thesis "A Reflection on the Question of Single European Currency Adoption in the Czech Press" deals with an analysis of media picture of the transition of the Czech Republic to the common currency euro in Czech media. With the help of the quantitative method of content analysis and the qualitative method of grounded theory, articles from the dailies Hospodářské noviny and Právo are being analysed. The sample includes articles from the beginning of May 2004, the accession of the Czech Republic to the European Union, until the end of April 2011. Quantitative content analysis enables comparison of both of the periodicals by means of organization and general summary of quantifiable data from the articles. The method of grounded theory regards the examined collection as a whole and provides detailed analysis of the sample in order to identify hidden structures of the text. The focus of this work is articulation of the media image of the European common currency adoption in the Czech Republic, based on the partial outcomes of the research project. This text as an extension of the bachelor thesis "The Image of Euro Adoption in Czech Press" uses its outputs in addition to the revision of the research with a broadened sample, mapping seven years of development of the topic. Consequently, scope for...

Bien que les pays de l’Europe Centrale et Orientale montrent de plus en plus des similitudes structurelles avec des pays développés, leurs économies restent vulnérables aux facteurs d’instabilité financière caractéristiques aux pays en développement. La présence de ces vulnérabilités a conduit aux débats sur les avantages de l’adhésion rapide à l’Union Economique et Monétaire (UEM). Traditionnellement, selon de la Théorie des Zones Monétaires Optimales, l’adoption de l’euro peut être bénéfique éliminant le risque du taux de change, donnant un meilleur accès au financement externe et atténuant l’impact des crises financières. De l’autre côté, l’abandon de l’autonomie de la politique monétaire et du taux de change prive les autorités nationales d’une marge de manœuvre dans le cas où le pays soit touché par les chocs asymétriques (d’offre) ou sa réponse aux chocs symétriques diverge de celle de la zone monétaire. L’objective de cette thèse est de déterminer les vulnérabilités financières des PECO et le degré d’asymétrie de leurs économies afin de participer aux débats sur la stratégie d’adhésion à l’euro. / Although the Central and Eastern European countries show in many respects increasing similarities to developed economies they still present some characteristics pointing to potential sources of increased financial vulnerability. The presence of these vulnerabilities has raised the discussion about whether early euro adoption could represent an effective policy remedy for the CEECs’ economies. Traditionally, in the sense of the Optimum Currency Area (OCA) Theory, the arguments vary between two points of view. On the one side, the EMU adhesion would have a beneficial effect eliminating exchange rate risks, giving a better access to external financing and attenuating the impact of financial crises. On the other side, EMU membership may not protect these countries against asymmetric shocks. In fact, in the case of (real) asymmetric shocks or asymmetric response to common (real and nominal) shocks, the output and employment costs of the euro adoption could be very high. The objective of this dissertation is to study these issues, focusing first on potential source of financial vulnerabilities, and then to assess the degree of the CEECs’ shock asymmetry to participate in debates on the euro adoption.

The Czech Republic has committed itself to adopt the euro with joining the European union in 2004. Until today there has not been any political interest of setting the specific date of euro adoption due to low public approval. Currently, there is an increase of positive public opinion about euro so it is the right time to start an objective discussion. The thesis is divided into three parts. The First part describes the history and evolution of the European monetary union, Maastricht convergence criteria and the theory of optimal currency area. The second part presents possible economic benefits and costs of joining the monetary union. The third and the main part examines the real effects of euro adoption on sample of selected countries with similar characteristics. The impact of euro on main economic indicators was analysed and there has been carried out a comparison between these countries. Also the role of euro in trade of selected countries has been highlighted. Last but not least, the possible impact of euro on country competitivness has been analysed in the context of optimum currency area theory. It is expected that joining the monetary union leads to a boost of bilateral trade which harmonizes the economic cycles of trade partners. The main purpose of this part is to prove the increase of competitiveness of exporters gained from monetary union measured by the raise of the bilateral trade interconnection. Finally these two criteria - gross domestic product alignment and bilateral trade interconnection have been used to describe the suitability of Czech Republic as a candidate country for the European monetary union.

The main aim of this thesis is to discover a suitable instant of time for the Czech Republic to join European Monetary Union. I am analyzing dependence between monetary policies of the Czech National Bank (CNB) and the European Central Bank (ECB) themselves as well as in relation to essential Czech macroeconomic indicators. My observation is focused on interest rate policies represented by operative interest rates, on monetary policies represented by indices of nominal effective exchange rates and on convergence monitoring. The analytical instruments I used in the thesis are correlation analyses, linear trends, the Granger causality test and the Impulse-Reaction test. Besides, my thesis examines fulfillment of the Convergence (Maastricht) criteria in the Czech Republic and other central European countries. This thesis also examines impact of the European monetary policy on some Eurozone member countries.