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The economic authorities’ decisions not only influence the economy, but also induce interactions between economic authorities. The recent crisis has provided evidence that the fiscal policy significantly shapes the decisions of independent central banks responsible for ensuring price stability – the main objective of monetary policy. This mechanism, described by the fiscal theory of the price level, is not a new discovery, because it has been debated on since the 1990s. The fiscal theory of the price level holds t...

The paper concentrates on the legal analysis of the independence of the Czech Central Bank. Central bank independence is a key precondition for the successful implementation of monetary policy and hence for sustainable non-inflationary economic growth. Independence protects the central bank primarily against any political pressure to adopt measures to boost short-term economic growth. The term "independence" is not explicitly expressed in Czech legal documents (the Constitution of the Czech Republic and the Czech ...

The article investigates the problem of influence of processes of globalization and transformation on the world financial and credit system. Discusses is the main directions and trends of the transformation process, as well as the nature and consequences of globalization. It reveals the positive and negative aspects of globalization in the economy and specifically in the financial sector.

In considering the issue of coordination between monetary policy and fiscal policy, or a lack of it, one has to take account of the so-called zero lower bound on nominal interest rates, also known as a zero-bound (ZLB) problem. The problem basically is that nominal interest rates cannot drop below zero. Many economists argue that a near-zero interest rate encourages fiscal stimulation that certainly has influence on the type of decisions made by the central bank. Some studies point to higher effectiveness of fisca...