Recently, there has been a broad discussion regarding the timing of joining the Euro zone. The mainstream opinion is that the sooner the Czech Republic joins, the better. However, as this thesis indicates, especially the econometric model, the Czech Republic is not ready for doing so. Hence, an early accession may not be beneficial.

My PhD dissertation concentrates on the theoretical analysis of the way monetary and fiscal policies should be conducted in the European Monetary Union (EMU) accession countries. Importantly fiscal and monetary policies in these countries are required to satisfy the membership requirements of the EMU summarized in the Maastricht Treaty. My interest lies in identifying the implications of different monetary and fiscal policies on the compliance with the Maastricht criteria. I characterize the optimal monetary policy and also optimal interaction between monetary and fiscal policy in the EMU accession countries. I study how the Maastricht criteria affect the design of optimal policies and their ability to stabilize business cycle fluctuations. In order to address all these issues I perform the whole analysis in the framework of a two-sector small open economy model incorporating frictions such as price stickiness and distortionary taxation. The model is calibrated to match the moments of the Czech Republic economy. In Chapter 1 I study the ability of different monetary regimes to satisfy the Maastricht convergence criteria. I analyze regimes that reflect the policy choices observed in the EMU accession countries, i.e. a peg regime, a managed float and a flexible exchange rate regime with CPI inflation targeting. I find that there exists a significant trade-off between compliance with the CPI inflation criterion and the nominal interest rate criterion. Under the benchmark parameterization none of the regimes satisfies all the criteria. The sensitivity analysis reveals that the probability that some of the regimes will satisfy all the criteria increases with openness of the economy and degree of substitution between home and foreign traded goods. However the ultimate choice of the regime which satisfies all the criteria depends on the degree of exchange rate-pass through. Chapter 2 focuses on characterization of optimal monetary policy for EMU accession countries in the framework of the already developed model. I find that the optimal monetary policy in a two-sector small open economy should not only target inflation rates in the domestic sectors and aggregate output fluctuations, but also domestic and international terms of trade. Under the chosen parameterization optimal monetary policy does not satisfy the CPI inflation and the nominal interest rate criteria. The optimal constrained policy induces smaller variability of the CPI inflation and of the nominal interest rate. At the same, it is also characterized by a deflationary bias which results in targeting CPI inflation rate and nominal interest rate that are 0.7% p.a. lower than their equivalents in the reference countries. In Chapter 3 I incorporate fiscal policy by endogenising tax and debt decisions and restricting taxes to only distortionary ones. I find that targets of the unconstrained optimal monetary and fiscal policy are similar to those of the optimal monetary policy alone. Under the chosen parameterization, the optimal policy violates three Maastricht criteria: on the CPI inflation rate, the nominal interest rate and deficit to GDP ratio. Since monetary criteria play a dominant role in affecting the stabilization process of the constrained policy, CPI inflation and the nominal interest rate are characterized by a smaller variability at the expense of a higher variability of deficit to GDP ratio. The constrained policy is characterized by a deflationary bias which results in targeting the CPI inflation rate and the nominal interest rate that are lower by 1.3% p.a. than their equivalents in the countries taken as a reference. The constrained policy is also characterized by targeting surplus to GDP ratio at around 3.7%. / Mi tesis doctoral se centra en el análisis teórico de las políticas monetarias y fiscales que deben llevarse a cabo en los países candidatos a la Unión Monetaria Europea (UEM). Es importante destacar que las políticas fiscales y monetarias de estos países tienen la obligación de satisfacer las condiciones de adhesión a la UEM resumidos en el Tratado de Maastricht. Mi interés se concentra en la identificación de las consecuencias de las distintas políticas monetarias y fiscales sobre el cumplimiento de los criterios de Maastricht. Mi tesis describe tanto la política monetaria óptima como la interacción óptima entre la política monetaria y fiscal en los países candidatos a la UEM. También se analiza cómo las condiciones de Maastricht afectan al diseño de las políticas optímas y su capacidad para estabilizar las fluctuaciones del ciclo económico. A fin de abordar estas preguntas se realiza todo el análisis en el marco de un modelo de economía pequeña y abierta con dos sectores que incorpora fricciones, tales como rigidez de precios e impuestos distorsionantes. El modelo está calibrado para que coincida con los momentos estadísticos de variables económicas de la República Checa. En el capítulo 1 se estudia la capacidad de los diferentes regímenes monetarios para satisfacer las condiciones de convergencia de Maastricht. Se analizan los regímenes que reflejan las opciones políticas observadas en los países candidatos a la UEM, es decir, un régimen de paridad, de flotación administrada y de tipo de cambio flexible. Existe una fuerte relación inversa entre el cumplimiento de las condiciones de inflación y del tipo de interés nominal. Bajo la parametrización escogida ninguno de los regímenes satisface todas las condiciones. El análisis de sensibilidad pone de manifiesto que la probabilidad de que algunos de los regímenes cumplan todas las condiciones aumenta con la apertura de la economía y el grado de sustitución entre bienes nacionales y extranjeros. Sin embargo, la elección final del régimen que cumple todas las condiciones depende del efecto traspaso del tipo de cambio. En el capítulo 2 se describe la política monetaria óptima para los países adheridos a la UEM en el marco del modelo ya desarrollado. La política monetaria óptima en una economía pequeña y abierta con dos sectores no sólo debería centrarse en las tasas de inflación en los sectores domésticos y las fluctuaciones de la producción total, sino también en los términos de intercambio domésticos e internacionales. Bajo la parametrización elegida la política monetaria óptima no cumple las condiciones relacionadas a la inflación y a la tasa de interés nominal. La política óptima restringida induce menor variabilidad de la inflación y de la tasa de interés nominal. Al mismo tiempo, esta politica también se caracteriza por una tendencia deflacionaria que se traduce en la selección de los objetivos de tasa de inflación y tasa de interés nominal que son inferiores en 0.7% anual a sus equivalentes en los países de referencia. En el capítulo 3 se incorpora la política fiscal endogenizando las decisiones fiscales, de endeudamiento público y de impuestos distosionantes. Los objetivos de las políticas fiscal y monetaria son similares a los de la política monetaria óptima. Bajo la parametrización elegida, la política óptima no cumple con tres condiciones de Maastricht: la tasa de inflación, la tasa de interés nominal y el ratio déficit / PIB. Como las condiciones monetarias juegan un papel predominante en el diseño de la política restringida, la inflación y la tasa de interés nominal se caracterizan por una menor variabilidad a costa de una mayor variabilidad de la relación déficit / PIB. La política restringida se caracteriza por una tendencia deflacionaria que implica la selección de objetivos de tasa de inflación y tasa de interés nominal que son inferiores en 1.3% anual a sus equivalentes en los países tomados como referencia. La política restringida también requiere un objetivo de superávit en torno al 3,7% del PIB.

The subject of thesis the Comparison of economic development of Slovakia and Estonia before and after the entry into euro zone, is a comprehensive analysis of the economic development of Estonia and Slovakia throughout the course of the integration process in the euro zone from 2004 to 2011. The first chapter reviews the theoretical bases of the work and discussed the theoretical bases of the processes of nominal and real convergence. In the introductory part is defined the concept of nominal convergence in the context of monetary integration and introduce each of the Maastricht criteria and its own set of macroeconomic indicators, on the bases of which ought to the development of Estonia and Slovakia in the analytical part of the work. The second part of the work is focused on the evaluation of the development of nominal and real convergence of the Estonia and Slovak economy to the states of the euro area and with each other on the basis of the development of selected indicators. The third part of the work deals with the final summary and comparison economic development ongoing nominal and real convergence in Estonia and Slovakia and assessment of the decision the timing of entry Estonia and Slovakia into the euro area.

This thesis concentrates on theoretical postulates of the Optimum Currency Area theory, mentiones preparedness of the Czech Republic in the area of Maastricht criteria, real convergence, alternative adjustment mechanisms, legislative a institucional preparedness, summarizes actual preparatory work and possible scenarios of the euro-adoption, describes opinions of public and entrepreneurs on euro, mentions experience of Slovenia and Slovakia with new currency and recapitulates the risks of procrastination in this area. Main objective is an analysis of the overall preparedness of the Czech Republic to adopt euro.

This diploma thesis deals with the issue of impact of the euro adoption to less developed EU countries, namely the PIGS countries. The first part defines the Maastricht criteria and their fulfillment by those States before joining the euro area. In the other two parts is analyzed the evolution of macroeconomic indicators before and after the outbreak of the financial crisis. These are the indicators of inflation, current account and net investment positions, the housing market and private loans, public finance, GDP and unemployment. In conclusion, there is an evaluation of the development of the individual countries on the basis of these indicators, assessed the suitability of the Maastricht criteria and the benefits of integrating these countries into EMU both for them and for the euro area as a whole.

This diploma thesis seeks to summarize the institutional development taken by the European Union so far (with a particular view to the changes brought about by the Treaty of Lisbon), and, based on this, to provide an assessment of the direction into which the European Union is headed at the beginning of this decade. Within this context, my thesis attempts to outline the various alternative scenarios for the future development of the EU's institutional framework; the likely candidates, to put it simply, are, on the one hand, even deeper integration in the form of a fiscal and political union, or, conversely, the abandonment of the idea of closer cooperation. Since the beginnings of the 1950s, the European Communities and, later, the European Union have been developing towards ever-increasing integration. Even today, one observes obvious tendencies towards intensifying this integration. However, this does not allow for the unambiguous conclusion that the European Union must result in the creation of a fiscal and political union. It is perfectly conceivable that the elected political representatives of individual member states may assume the opposite view, and that tendencies will prevail within the European Union towards a more informal collaboration among separate countries. The present work also attempts a comparison of the views held by politicians, political scientists, analysts, and intellectuals. One finds that even these authors do not arrive at clear-cut conclusions, nor should one expect them to be able to make such conclusions. This thesis draws attention to a number of contradictory aspects - chiefly among them the violation of the Maastricht criteria, and the obvious breach of Article 125 of the Treaty of Lisbon, which prohibits mutual financial assistance.

The final thesis deals with impact of financial crisis on public finance in Czech Republic. The aim of my thesis is to give to a reader an idea about impact of financial crisis on the state budget of CR, especially on expenditure and revenue side. Except of this, according to the Maastricht criteria, it is evaluated effect on debt of public budget and deficit of state budget. At the thesis are used sources mostly from CNB, MFCR and OECD. In theoretical part is defined the term "financial crisis", described causes of origin of the financial crisis and analysis impact of financial crisis on the world markets. Next part of the thesis is devoted to examination and analyzes of impacts of financial crisis on public budget, particularly on revenues, expenditures, debt and deficit of the budgets. At last part of the diploma thesis we can find adequate recommendations and summary of knowledge, which emerged from provided analysis.

The aim of this thesis is to evaluate the convergence process of the Czech Republic. The thesis describes the historical background of the Treaty on European Union and the criteria for adopting the euro are described in detail. The convergence process of the Czech Republic is viewed from the perspective of a nominal convergence (inflation rates, government finance, exchange rates, long-term interest rates) as well as a real convergence (measured by GDP per capita in purchasing power parity). Further, the attention is paid to the institutional framework of fiscal policy of the Czech Republic. Indicators of economic harmonization are also analyzed, such as the business cycle, interest rates, exchange rates and stock indices. The comparative method is used to evaluate -- development indicators are compared over time and with countries in a similar position with the Czech Republic.

This Diploma Paper provides an analysis of the Czech Republic convergence process, which importance grows more in the period before entry into the European Monetary Union. The convergence is evaluated on the basis of three criterion units which are standing alone but fading into each other. It is the Nominal convergence including Maastricht criteria which have been stated in the Treaty on European Union, then Real convergence criteria and criteria which accompany the development of the Optimum Currency Areas Theory. The theoretical part gives the definitions of particular criteria and draw the attention to potential problems which can occur by their interpreting. In the practical part there are comparative characteristics used to analyze achieved state of the convergence in the Czech Republic in relation to EU countries and euro area countries. This part attends also to monitoring the current financial and economical crisis and it's impact on individual indicators.

The diploma thesis aims to find out how the global economic crisis influenced the Italian economy. The thesis is divided into four chapters. The first chapter describes the process of the European monetary integration, where the role of Italy is emphasized. The second chapter deals with the specifics of the Italian economy which are put in historical context. The third chapter analyses the impacts of the crisis on the Italian economy. The last chapter is dedicated to anti-crisis policies taken by the Italian government. Furthermore, the current situation of the Italian economy is assessed.