The impact of Monetary Policy on the Economic Growth of the Czech Republic

Abstract

This study deals with the impact of monetary policy on the economic growth of the Czech Republic. The subject of this thesis is the examination of monetary policy of the Czech Republic in the period 2001-2022. The main focus of the thesis is based on investigating the potential impact of monetary policy on the economic growth in this country. Quarterly data for the Czech Republic economy for the 2001Q1-2022Q3 period was used in the study. Whether the monetary policy is effective in the Czech Republic has been examined using VAR analysis. According to the results obtained, the effectiveness of monetary policy instruments in the Czech Republic varies periodically. According to the findings, an increase in real GDP was observed after COVID-19. This indicates that monetary policy instruments generally have a positive effect on the economic growth of the country. JEL Classification: Keywords: Title : E31, E42, E50, E52, E58 Monetary Policy, Economic Growth, Czech Republic The Impact of Monetary Policy on The Economic Growth of the Czech Republic