Czech Republic 2008: Strong Currency, No Rush Toward the Euro

On the global scene, the year 2008 was characterized by a lingering mortgage crisis in the first half of the year, and an onset of a global financial crisis and the impending recession in the second half of the year. On the background of these events, the annual CERGE-EI economic survey of the Czech Republic, edited by Dr. Alena Bicakova and Dr. Peter Katuscak, focuses on the strong appreciation of the Czech currency and the effort of the Czech National Bank to tame inflation by consecutive interest rate hikes in the first half of the year followed by a correction in the exchange rate and aggressive rate cutting in the fall. Traditionally, the survey also covers developments in the capital and labor markets and public and non-profit sectors. Like in 2007, it also adds a more detailed coverage of selected sectors and it closes with a special new chapter on the economic position of the Czech Republic within the EU.