The paper analyzes how central banks pay attention to foreign exchange exposure and the profit function in pursuing monetary policy. The results of the paper document that in practice, central banks do not take the microeconomic approach based on profit maximization in making decisions on the...

This paper analyzes the development of the external balance in five Central and East European countries: Czech Republic, Hungary, Poland, Slovakia, and Slovenia. The paper applies, expands, and empirically verifies the ideas of life-cycle theory in the area of the effects of foreign direct...

Monetary and fiscal policy should be paired with the economic objectives on which they have the most influence. The authors have applied Mundell's principle of effective market classification (EMC) to the conditions of the Czech economy - a small open economy with a managed floating exchange...