From a methodological point of view, standard neo-Keynesian IS - LM analysis of the macroeconomic effects of fiscal policies is rather problematic. The reason is that this analysis is fundamentally static and lacks microeconomic foundations. Moreover, this analysis focuses too heavily on the...

This article aims to argue with the wide-spread perception of discretionary fiscal policy as a poor macroeconomic stabilization tool, especially in comparison with the contemporary performance of monetary policy. European Monetary Union Member States are hit by the asymmetric shocks or respond...

Monetary and fiscal policy should be paired with the economic objectives on which they have the most influence. The authors have transformed this traditional Mundell's principle of effective market classification into the conditions of the Czech economy - a small open economy with controlled...

The question of public finance stability and the economic stability are widely discussed topics, not only in transitive and emerging economies, but also in developed countries. The aim of this paper is to find out and measure connections between the fiscal policy development and external...

This paper deals with the development of mandatory expenditure and its effect on the flexibility of fiscal policy in the Czech Republic. Fiscal flexibility is measured by the Steuerle-Roeper index of fiscal democracy, which expresses the proportion of budgetary revenue that remains after...

The aim of this article is to estimate the mutual interaction of monetary and fiscal policy in the Visegrad Group countries, i.e. in the Czech Republic, Slovakia, Poland, and Hungary. The relations between monetary and fiscal policy - its coordination, cooperation or mutual antagonism - are...

The paper provides a comprehensive survey of the theories of consumption functions. The Keynesian consumption function is examined in more detail under a condition of a small open economy. The paper explains the variety of consumption expenditures in the Czech Republic between 1993 - 2001. In...

The aim of the article is to explore how the results of the U. S. subprime mortgage crisis influenced economic policy of governments in highly developed countries. It analyses consequences of a state intervention especially for government budgets and a rise of government debts. Then the article...

The objective of the article is to identify impact of economic policy implications on current financial and economic crisis. The analysis examines a hypothesis that the main causes of financial and economic crisis include unbalanced developments of the macroeconomic sphere as well as existing...