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Czech banks in context of the economy's equilibrium, growth and competitiveness

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  • Petr Chvojka

Abstract

The paper deals with the problem of interrelated development of basic economic characteristics - growth, equilibrium and the resulting international competitiveness of an economy - and tries to find whether and in which way their inherent contradictions could be influenced by a suitable economic policy. The possibilities of applying a monetary policy with optimal results are discussed under the viewpoint of the specific conditions of the Czech economy's transformation (such as the problem of limited functioning of the financial and banking system in an uncompleted institutional, legal, control framework). These conditions are both limiting the possibilities of positive interaction between the macroeconomic policies and the development of the microsphere, and at the same time are producing the problem of disparity in the development of the monetary (financial) and real (production) spheres.

Suggested Citation

  • Petr Chvojka, 2001. "Czech banks in context of the economy's equilibrium, growth and competitiveness," Prague Economic Papers, Prague University of Economics and Business, vol. 2001(2).
  • Handle: RePEc:prg:jnlpep:v:2001:y:2001:i:2:id:172
    DOI: 10.18267/j.pep.172
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