This thesis studies the interaction between monetary and macroprudential policy using a DSGE model with real and financial frictions under government and financial shock scenarios. Countercyclical capital requirements are used as a macroprudential policy tool combined with a Taylor rule for monetary policy. In the case of the government shock, our findings indicate that policies' coordination reduces the volatility of the output vis-à-vis a "monetary policy only" regime. Analysis of financial shocks indicates that monetary policy alone can suffice to ensure financial stability. Lastly, welfare analysis suggests there is no optimal policy combination for all agents and highlights a redistributive effect of both shocks, showing that policy that is beneficial for one group of agents can decrease welfare for another. JEL Classification E44, E52, E61 Keywords monetary policy, macroprudential policy, capital requirements, financial stability Author's e-mail kateryna.kireichenko@gmail.com Supervisor's e-mail martina.jasova@fsv.cuni.cz

The Central Bank, its Legal Status and Scope of Activities Central banks are very powerful institution and central banking is a very complex discipline. Monetary policy, the most important activity of central banking, has become the key instrument of macroeconomic stabilisation. The aim of my paper has been to analyse all the areas of central banks' operations, aiming especially at monetary policy and its instruments, and also to tackle the recently emerged doubts about what the main objective of central banks should be. I also provide a review and an analysis of the current legal status of the Czech National Bank from the independence and accountability point of view. The first chapter of my work is dedicated to the history of central banking. Second chapter examines the individual functions that central banks carry out, with third chapter analysing the most important of them, the monetary policy. The last chapter is dedicated to the Czech National Bank (CNB) and is subdivided into four parts: the first one is outlining the history of CNB, the second one gives us the detailed overview of the individual functions of CNB, its main target and instruments CNB uses to reach the target. The third one is devoted to CNB relations with European Union and the fourth part focuses on the legal status of CNB...

This thesis examines the central banking transparency and financial stability communication. The main goal is to find the determinants of the updated Monetary policy transparency index and the index for financial stability trans- parency, which cover 110 countries during the period 2000-2011. We analyse the individual components of transparencies and perform regression models with the set of economic and political variables in order to find drivers of all aspects of transparency. As a basic observation we verified the increasing trend in both types of transparencies during last two decades. We found out that economi- cally well developed countries with flexible exchange rates, quality government and stable political institutions tend to be more open about their monetary policies. Moreover, high degree of monetary policy transparency and the occu- rance of past systemic banking crisis implies higher openness of central banks about financial stability issues. The drivers of Financial stability transparency index components display significant variations, especially variables like rule of law or past financial distress. It is concluded that financial stability trans- parency is still a young field of study and many central banks are still in the developing phase of learning. Keywords central banking,...

This thesis compares monetary policies, institutional status and different approaches to the selection of monetary policy and setting goals of central banks in the case of Czech National Bank, the European Central Bank and the Federal Reserve System. The first chapter deals with the characteristics of the central bank, legislative regulation of the Czech National Bank is analysed there and it mentions the Czech peculiarities in the adjustment of the central bank. In addition, this chapter deals with the possibilities for the name of the central bank and there are examples of different solutions from the world. The second chapter focuses on the analysis of the central bank's position in the state. It emphasise independence as it is the core value for the central bank. This chapter also describes the regulatory and supervisory powers of the central bank and briefly discuss the composition of assets and financing of the central bank and its basic financial statements. The third chapter deals with the theory of monetary policy. Particular attention is paid to the monetary policy of inflation targeting. Furthermore, this chapter provides an overview of transmission mechanisms and describes various monetary policy instruments which central banks have. At the end of this part of the thesis there is a...

This work investigates the international spillover effects and transmission channels of Unconventional Monetary Policy (UMP) of major central banks from United States, United Kingdom, Japan and Europe to Latin-American countries. A Global VAR model is estimated to analyze the impact on output, inflation, credit, equity prices and money growth on the selected countries. Results suggest that indeed, there are international spillovers to the region with money growth, stock prices and international reserves as the main transmission channels. In addition, outcomes are different between countries and variables implying not only that transmission channels are not same across the region but also that the effects of the monetary policy are not distributed equally. Furthermore, it is found evidence that for some countries transmission channels may have transformed due to the crisis. Finally, effects of UMP during the crisis were in general positive with exception of Japan indicating that policies from this country brought more costs than benefits to the region. Keywords Zero Lower Bound, Unconventional Monetary Policy, International Spillovers, Global VAR, GVAR.

M.Com. (Economics) / The objective of the thesis was to examine the creation of a generally acceptable international unit of account as a precondition for the establishment of a more orderly international monetary system. The payments problem over the national boundary has for centuries baffled the brains and wits of the world's foremost economists, bankers and politicians. The high level of abstraction of the international monetary phenomenon, and the dynamics and geo-politics involved, tend to conceal the essence of the variables at work. The evolution of the international monetary system would thus seem to have trailed the evolution of the national monetary systems by almost two centuries. As recently as the twenties of this century the essence of the international monetary system was still sought in gold, a commodity that could never accommodate the growing payments needs of the world economy, especially at times when events such as wars and technological innovation acted as powerful catalysts expediting the course of events between nations. The use of the key currencies, especially the British pound sterling and the US-dollar, as instruments for international payment could not work for any length of time ...

M.Comm. / This study uses annual data for five SACU members over the period 1991-2005 to investigate the evidence for convergence in macroeconomic variables. Panel unit root test as an econometric tool is utilised together with other several approaches for this analysis. The results show significant evidence that the SACU countries have reached a reasonable level of convergence on specific macroeconomic variables. This can be attributed to common economic policies and institutional features. It is also evident that the countries that are members of the CMA show a dramatically higher convergence rate. As far as monetary policy is concerned, a high degree of convergence has been achieved in SACU. However, the results show no convergence on fiscal policies. This could be attributed to data constraint on debt to GDP which was used as a proxy for fiscal policy.

In the first chapter, I analyze the impact of changes in aggregate holding in special asset purchase programs by Federal Reserve Systems (FED) as an alternate monetary policy at aggregate level. Later, to complement the analysis of monetary impact at aggregate level, I also analyze the impact of monetary actions at bank stock level with a set of 186 banks. First, for the overall sample period, expected monetary shock has positive effect on bank stock return; however, unexpected shock component has otherwise negative impact. Second, during both conventional and QE regime, monetary shocks are not significant in explaining weekly stock returns; however change in FED’s total asset holding in special programs is significant during the QE regime and such findings are more robust for the “large” banks when compared to “medium” and “small” banks. The second chapter presents the second essay that is one of the early studies to analyze whether either the changes in accounting standard or the changes in prudential regulatory regimes may affect the bank earning management in terms of Loan Loss Provisioning (LLP) systematically. Results suggest that, in general, bank managers use LLP as a tool for earning management for income smoothing and also for capital management once LLP is allowed to be a part of Tier-I capital requirement. Both changes in prudential regulation from pro-cyclic to a dynamic regime and convergence of accounting standard from rule-based to principle-based standards have significant negative fixed effects separately and jointly once included.

The purpose of this diploma thesis is to examine the impact of monetary and fiscal policy upon business cycle and the long term growth on the example of Swiss economy. The research approach is the analysis of monetary and fiscal indicators related with gross domestic product. Theoretical part explains business cycle theories, which consider cause of economic fluctuations in monetary and fiscal policy and further describes stabilization role of this particular policies and develop relevant problems within it. In practical part there is conducted research of monetary and fiscal influence upon Swiss business cycle with eligible indicators. The final part summarizes the most important knowledge and provides appropriate recommendations to reduce cyclical volatility of the product and to create a suitable economic and political framework for a functioning economy in the long term.

This work aims to bring readers the relatively in the Czech Republic unknown issue of central banking in France. During the 210 years-long history of operation of the Banque de France has been quite a substantial development of its legal status and monetary policy, which the author tries to show. As part of this development is also described the participation of France and its central bank in the international monetary integration, in which helping shape this country very much involved. In addition, this work deals with the circumstances and ways of creating a modern French monetary policy making, and being represented by the Banque de France as part of national economic policy as part of a supranational European System of Central Banks. The work complements the analysis of the current state of the French economy from the perspective of the Banque de France.