The paper analyzes the relationship between large-scale capital inflows and sterilization efforts in the Czech Republic during 1993–96 using a vector autoregression (VAR) model, which consists of domestic credit, foreign reserves, and domestic and foreign interest rates. The analysis finds...

This Selected Issues paper and Statistical Appendix describes developments in the Czech labor market since 1995 and examines forces underlying these developments. The main focus of the paper is on how the characteristics of unemployment and employment have been changing, and how the changes are...

Of the new members entering the European Union (EU) in May 2004, several had achieved a decade of impressive export growth, expanding significantly their shares of world markets. The empirical analysis shows that over the period 1994–2004, quality and technology upgrading associated with the...

This 2004 Article IV Consultation highlights that the Czech Republic’s GDP expanded by 3.1 percent in 2003 and the first quarter of 2004, mainly supported by household consumption. Investment was also strong in 2003—driven by spending on public infrastructure—and swelled in early 2004...

The key findings of the Czech Republic’s 2010 Article IV Consultation are discussed. Large foreign direct investment inflows fostered trade integration, underpinning an export-led expansion. Higher initial standard of living contained consumption convergence pressures. An improved fiscal...

This Selected Issues paper analyzes current developments and outlook for inflation in the Czech Republic. Inflation in the Czech Republic has fallen substantially since peaking in the double digits in 1998. The crisis-led depreciation of the koruna in mid-1997 pushed year-over-year inflation to...

This 2010 Article IV Consultation discusses Czech Republic’s economic condition. The Czech economy’s fundamentals were strong prior to the global economic and financial crisis. However, owing to its highly open nature, the economy was hit by spillover effects. A downturn in the euro area...

This Selected Issues paper on the Czech Republic presents an analysis of various aspects of population aging: its macroeconomic effects; impact on fiscal sustainability; and implications for private savings. The paper simulates the macroeconomic effects of population aging in the Czech Republic...

On January 1, 1991, the Czech and Slovak Federal Republic launched a comprehensive reform program designed to establish a market economy. This paper charts the progress of the reform program in the context of Czechoslovakia's prewar history as a major industrial power, its subsequent slow...

Growth in the Czech Republic is projected to slow sharply in 2009 amid a gathering recession abroad and tightening credit at home. This 2008 Article IV Consultation highlights that the shrinking demand from the euro area, especially Germany, will curtail exports and direct investment inflows....