Potential new entrants to the European Union from Central and Eastern European countries face many challenges to achieve financial convergence with the existing EU nations. Using detailed case studies from Bulgaria, the Czech Republic, Latvia, Lithuania and Poland and analysis of cross country...

The study is focused on the first five years of development of well- functioning financial markets that was an important part of economic transition. The Czech experience is used to gain an insight into the complexity of the process of their emergence. Major players on the Czech financial...

FDI has become a importance source of external finance for several transitional economies, in particular those in Central Europe.The paper analyses determinants of FDI in Central Europe by providing econometric analysis. We examine the flows of FDI into the Czech and Slovak Federal Republics...

This paper presents the Czech approach to inflation targeting (IT) that was co-authored by the authors of the paper. The IT strategy was introduced by the Czech National Bank in 1997. The paper gives an overview of history of monetary policy in the Czech Republic and reasons for a change in...

Monetary policy makers need to build two pillars for their inflation targeting strategy. Firstly, a methodology for producing the central forecast should be developed, since the whole decision process is more easily organised around a model forecast. Secondly, a methodology for dealing with...

The paper analyzes the impact of voucher privatization scheme on behavior of households and its consequences for macroeconomic policy. The stylized facts of the voucher privatization scheme are described for the Czech case. The consumption as well as portfolio decision of households during the...

In 1992, the political dissolution of Czechoslovakia highlighted the problem of designing monetary disintegration for two interdependent republics. This paper weighs costs and benefits of the gradual approach to monetary disintegration that was applied in the Czech-Slovak case. The analysis...

We offer a novel methodology for assessing the quality of inflation reports. In contrast to the existing literature, which mostly evaluates the formal quality of these reports, we evaluate their economic content by comparing inflation factors reported by the central banks with ex-post...