Inflation Targeting as a Monetary Indicator of Central Banks Abstract The diploma thesis on the subject "Inflation Targeting as a Monetary Indicator of Central Banks" aims to compare the successfulness of the inflation targeting executed by the Czech National Bank and the European Central Bank. Inflation targeting as a monetary- political regime was used for the first time almost 30 years ago and its merit is to influence the inflation rate based on the adjustments of short-term interest rates and the stabilization of inflation expectations. It is based on the accountability of central banks to fulfill the set target, their transparency and communication with the public, for example via publishing the macroeconomic prognoses. The first chapter of the diploma thesis aims to define the term central bank and inflation targeting. It deals with the purpose of central banks, their instruments to pursue monetary policy, independence and accountability of central banks, and determines the rule of central banks' monetary policy. Additionally, it explains medium- and long-term vertical Phillips curve and Taylor's rule. The second chapter addresses the topic of the Czech national bank and aims to describe its function and inflation targeting. It specifies its main purpose, instruments of the monetary policy and...

This diploma thesis deals with the impact of the debt crisis in the euro area to status of the euro in the world. The first part describes the circumstances of the origin and progress of the debt crisis. In the second part are more fully described various monetary policy measures taken by the ECB in response to the debt crisis as well as their impact on the European economy. The third part analyzes the international role of the euro in sub-segments of the financial market in the period before and during the debt crisis and provides an overall picture of its impact on the euro.

The ECB was established during the third phase of the economic and monetary union and its activities launched on 1. 7. 1998. It has become a new independent institution whose primary task became the conduct of monetary policy for countries that have accepted the euro currency. This master thesis examines the impact of monetary policy of the euro area and its asymmetric effects. ECB affects individual national economies using its strategies and instruments. Using especially interest rates makes monetary policy expansive or restrictive. For every country, belonging to euro area, has this policy different implications. Although ECB attempts to implement monetary policy for every country equally, for some countries has a monetary policy asymmetric effect. Using the Taylor rule of monetary policy, we can find contradictory effects of monetary policy.

The thesis deals with the European Central Bank which is a central institution of the European Monetary Union; its establishment, structure, organs and its relationship to other European Union institutions. Core principles of monetary poli cy and instruments are described. The second part is dedicated to the analysis of monetary policy with focus on changes in the rate of main refinancing operations with respect to the economic development (inflation rate, GDP growth etc.). The time from 1999 is divided into several periods and particular attention is paid to the contemporary economic crisis and ECB's non-standard measures.

The 2008 eurozone financial crisis has only worsened as of summer 2011 raising questions about the economic future of the eurozone and sending shock waves through economies around the world. Greece was the first state to receive a bailout from the European Union and the International Monetary Fund, surprisingly followed only six months later by Ireland. The goal of this thesis is to analyze the challenges posed to smaller, weaker economies within the eurozone, specifically Greece and Ireland, since the recent eurozone financial crisis. This study is based on the experiences of both Greece and Ireland as very different members of the single currency. How and why did these states meet the criteria for euro convergence? To what extent was there support for the euro in both countries in the past? To what extent is there support today after the near collapse of both economies and the rescue packages brought about by the EU? As a result of the recent financial crisis, Greece and Ireland are facing difficulties with the terms of European economic and monetary union. Since these smaller economies are, among other reasons, unable to devalue the currency in order to regain economic competitiveness as members of the single currency, they are recognizing that the eurozone's economic structure may not adequately address their national economic vulnerabilities during times of crisis. Because of this and the worsening economic conditions in both Greece and Ireland in 2011, I hypothesize that these states are "fraying" the edges of the eurozone, or increasingly degrading the eurozone's specific economic relationships, and demonstrating this through a growing skepticism of the economic benefits to smaller, weaker economies as members of the eurozone. Additionally, citizens of both states are indicating this skepticism by increasingly separating from the parties and policies that support eurozone membership in their states, as demonstrated by the political shifts in each state since the crisis began. In order to study the phenomenon of "fraying" and address the question of the challenges posed to the smaller, weaker economies and their incorporation into the eurozone, I analyze the effects of the debt crisis in Greece and Ireland in terms of the EU/IMF bailouts, the austerity measures each state took in response to the crisis, and the resulting national political changes. I found that neither Greek nor Irish citizens were unequivocally growing skeptical of their membership in the single currency. In fact, citizens in both states still support the idea of the euro. However, there did appear to be a certain element of dislocation of support between these two states and the eurozone in the aversion each has to the terms of their bailouts. The empirical work to study this question includes secondary scholarly reading, national and supranational monetary and political policy analysis, and analysis of national and supranational economic indicators. The three main topics analyzed in this study are the EU/IMF bailouts, the austerity measures taken in each state due to the crisis, and what may be the resulting national political changes. The effects of the three key issue areas discussed in this thesis are studied in both Greece and Ireland. / Master of Arts

Thesis (Ph. D.)--University of California, San Diego, 2002. / Vita. Includes bibliographical references.

Šiame darbe nagrinėjama, kokią reikšmę turi Lietuvos banko (LB) vykdoma pinigų politika šalies ekonomikai ir kaip priimti sprendimai veikia ekonomikos augimą, nedarbo lygį bei kainų stabilumą. Ekonomikos augimas čia matuojamas bendrojo vidaus produkto augimu, o kainų stabilumas - infliacijos lygiu. Teorinėje dalyje analizuojama LB vykdoma pinigų politika bei jos veikimas ECB sistemoje. Rašant darbą, atlikta mokslinė literatūros analizė. Analitinėje - tiriamojoje dalyje naudojami statistiniai – ekonometriniai metodai, t.y. statistinių duomenų grupavimas, sisteminimas, jų lyginimas, apdorojimas ir grafinis vaizdavimas, porinės ir daugialypės regresinės analizės metodas „SPSS“ programa, Tylio neatitikimo koeficiento vertinimas, Tayloro taisyklės vertinimas šių dienų kontekste. Atliekant tyrimą naudoti statistiniai duomenys, paimti iš Lietuvos banko, Europos centrinio banko, Eurostat ir OECD duomenų bazių. Panašia šio darbo tema buvo parengtas ir pristatytas straipsnis pavadinimu „Lietuvos banko vaidmuo ir galimybės ekonominės krizės laikotarpiu“ Šiaulių universiteto 11-oje studentų mokslinių darbų konferencijoje „Ekonomikos ir vadybos aktualijos“, užėmęs antrąją vietą. Straipsnį numatyta išspausdinti Šiaulių universiteto leidinyje „Jaunųjų mokslininkų darbai“. / The paper deals with the significance of monetary policy decisions of the Lithuanian Bank (LB) on economics of the state and with how the passed decisions influence economic growth, unemployment level and price stability. Economic growth here is measured by GDP growth, price stability by inflation level. In the theoretical part LB’s monetary policy and its operation in ECB system are analysed. While writing the paper, scientific analysis of literature was carried out. In the analytical and research part statistic econometric methods are used, i.e. statistic data grouping, systematizing, comparing, processing and graphical depicting, pair and multiple regression analysis method and SPSS software, Tyll’s non-compliance rate assessment, Taylor’s rule evaluation in modern context. During the research statistical data taken from Lithuanian Bank, European Central Bank, Eurostat and OECD data bases was used. Article was prepared and presented on similar topic “Lithuanian Bank’s Role and Opportunities during the Economic Crisis“ in Šiauliai University 11th students scientific conference “Economics and Managerial Urgencies“, which got the second place. The article is intended to publicize in Šiauliai University publication “Young Scientists Papers“.

Why was it so difficult for European Union countries to establish the European Central Bank? In the 1992 Maastricht Treaty, EU governments committed themselves to an independent, stability-oriented ECB, and to ensuring low inflation rates and low budget deficits. Between 1992 and 1998, they fought over the terms of membership and whether European economic policy should promote growth more than stability. Political parties transmit voter preferences over growth and stability into national policy on the basic priorities of monetary union, while the arrangement of economic institutions reinforces or frustrates the ambitions of a governing coalition. This not only leads to governments with clear priorities that conflict at the European level. Governing coalitions frustrated by economic institutions that thwart their economic policies can promote monetary union in order to force changes domestically. Therefore, conflict arose among stability-oriented governments over whether low budget deficits and inflation were to be achieved before EMU was launched. This reflected the conflict between France and Germany. The dissertation examines the links between the politics of economic policy in France, Germany and Spain, and their policies toward Economic and Monetary Union.

No description available.

Magistro baigiamojo darbo tema yra aktuali, nes Europos Sąjungos bendrosios pinigų politikos sukūrimas bei funkcionavimas yra ypatingai svarbus žingsnis Europos integracijoje, atveriantis kelią galutiniam politiniam valstybių narių suartėjimui. Todėl detali šios Europos Sąjungos politikos srities studija yra būtina siekiant pažinti ateities integracinių procesų galimybes bei iššūkius. Paskutinė euro zonos plėtra įvyko 2009 m. sausio 1 d., kuomet Slovakijoje įvesta euro valiuta. Europos Bendrijos valiutą naudojančių ES valstybių narių skaičius padidėjo ik šešiolikos. Nors Estija kol kas dar nėra pasiekusi visiškos integracijos EPS procese, tačiau 2010 m. gegužės mėn. Europos Komisija oficialiai pasiūlė Estijai nuo ateinančių metų sausio 1 d. prisijungti prie euro zonos. Tyrimo tikslas – įvertinti Slovakijos ir Estijos ekonominę ir teisinę konvergenciją. Atsižvelgiant į tyrimo tikslą ir iškeltus uždavinius, darbe teoriniu aspektu apžvelgiami Europos ekonominės ir pinigų sąjungos kūrimo etapai, išryškinami dalyvavimo ekonominėje ir pinigų sąjungoje privalumai ir trūkumai; išanalizuojama Europos centrinio banko bei kitų Europos Sąjungos institucijų politika euro zonos plėtros procese; įvertinamas Slovakijos ir Estijos makroekonominių rodiklių atitikimas Mastrichto konvergencijos kriterijams bei Europos Sąjungos ir šių šalių nacionalinės teisės harmonizavimas, bei pateikiamas Slovakijos naudos euro zonoje įvertinimas ir Estijos pasiruošimas prisijungti prie ekonominės ir pinigų... [toliau žr. visą tekstą] / Subject of the final master’s thesis is topical, because development and functioning of the common European Union monetary policy is especially important step in European integration, opening the way for final political approach of the member states. Thus a detailed study of this sphere of the European Union politics is necessary striving to cognize possibilities and challenges of the future integration processes. The last expansion in the Euro-area happened on 1 January 2009, when the euro was introduced in Slovakia. A number of the EU member states that use the currency of the European Union increased up to sixteen. Though Estonia still hasn’t reached complete integration in the EMU process, yet in May 2010 European Commission officially suggested Estonia to join the Euro-area from 1 January 2011. Objective of the research is to assess Slovakia’s and Estonia’s economic and legal convergence. Considering the objective of the research and set tasks, stages of development of the Economic and Monetary Union in Europe are covered in the work in theoretical aspect, advantages and disadvantages of participation in the Economic and Monetary Union are highlighted; policy of the European Central Bank and other institutions of the European Union in the process of euro-area expansion is analysed; conformity of Slovakia’s and Estonia’s macroeconomic indices to criteria of Maastricht convergence and harmonization of the European Union Law and national law of the mentioned countries and... [to full text]