Fiscal Policy in the Czech Republic Under Transition

1995 ◽  
Author(s):  
Pavel Stepanek ◽  
Vera Uldrichova ◽  
Drahomira Vaskova ◽  
Vera Kamienickova ◽  
Milena Horcicova
Keyword(s):  
Czech Republic ◽  
Fiscal Policy ◽  
The Czech Republic

Selected elements of fiscal policy in the Visegrad Group Countries

2016 ◽  
Vol 61 (4) ◽  
pp. 66-83
Author(s):  
Tomasz Grabia
Keyword(s):  
Czech Republic ◽  
Fiscal Policy ◽  
Eastern Europe ◽  
Public Debt ◽  
Central And Eastern Europe ◽  
The Czech Republic ◽  
Public Finances ◽  
Visegrad Group

The article discusses key problems of fiscal policy in four selected countries of Central and Eastern Europe (Poland, the Czech Republic, Hungary and Slovakia) in years 2001—2014. The analysis covers, among others, indicators of public debt and its determinants, as well as indicators of budget revenues and expenditures. The article points out that public debt increased in all the studied countries in the analysed period. Both structural and cyclical deficits were responsible for its build-up. The country with the best state of public finances was the Czech Republic. Although the situation improved from 2011 Hungary had the highest level of debt in relation to GDP. That country was also characterized by a degree of fiscalism, measured by both budget revenues and expenditures in relations to GDP, much higher than those for other countries.

scholarly journals Is the Fiscal Policy of the Czech Republic Pro-cyclical?

2015 ◽  
Vol 63 (5) ◽  
pp. 1719-1728
Author(s):  
Martin Rolák ◽  
Martin Cigán
Keyword(s):  
Czech Republic ◽  
Fiscal Policy ◽  
Fiscal Rules ◽  
Output Gap ◽  
The Czech Republic ◽  
Structural Part ◽  
Economic Cycles ◽  
Random Character ◽  
The Business Cycle ◽  
Area Limit

The main goal of this paper is to analyse whether the fiscal policy of the Czech Republic is anti-cyclical. This analysis is carried out through decomposing the government’s balance into its cyclical and structural part. The first differences of the structural part are then put in relation to the output gap to determine whether the fiscal policy is pro- or anti-cyclical. Moreover, the correlation of government expenditures and revenues with the business cycle is also subject of our analysis. We also examine whether the fiscal rules which the Czech Republic would have to adhere to once it enters the euro area limit fiscal policy as a stabilizing mechanism.The paper concludes that the fiscal policy in the Czech Republic was for the most part rather of a random character than anti-cyclical during the examined period 1998–2013. This conclusion has two implications. Firstly, there is still room for improvement in fully and consistently utilizing fiscal policy to stabilise the Czech economy throughout economic cycles. Secondly, fiscal rules would not limit the Czech government to practice anti-cyclical fiscal policy if they have been implemented since 1998.

scholarly journals Integration of Monetary and Fiscal Policy of the Countries of the Visegrad Group

2014 ◽  
Vol 14 (3) ◽  
pp. 197-213
Author(s):  
Stanislav Kappel ◽  
Jan Janků
Keyword(s):  
Monetary Policy ◽  
Czech Republic ◽  
Fiscal Policy ◽  
Successful Implementation ◽  
The Czech Republic ◽  
Conflict Situations ◽  
Wide Range ◽  
Monetary And Fiscal Policy ◽  
Visegrad Group

Abstract The aim of this paper is to evaluate mutual interaction of monetary and fiscal policies in the countries of the Visegrad group, i.e. in the Czech Republic, Slovakia, Poland and Hungary. The relationship of monetary and fiscal policy - their coordination, cooperation or mutual antagonism - are basic determinants of successful implementation for economic policy of the state. Fiscal and monetary policies usually have different aims, and some conflict situations may arise in practical economic and political decision- making. Each policy has to make its decision with regard to the other one. Methodical approaches of this contribution are based on the game theory, which deals with the analysis of a wide range of decision situations with more participants (players) and it is primarily focused on the conflict situations. This game-theoretical approach is responsible for creating the theoretical model which is then dealt with in the empirical analysis. We find a distinctly stabilizing role of monetary policy and relatively problematic stabilizing role of fiscal policy in the analyzed countries. The dominant role of monetary policy is statistically confirmed in the case of the Czech Republic and Hungary.

scholarly journals Does politics matter in the conduct of fiscal policy? Political determinants of the fiscal sustainability: Evidence from seven individual Central and Eastern European countries (CEEC)

2007 ◽  
Vol 54 (4) ◽  
pp. 489-500 ◽  
Author(s):  
Srdjan Redzepagic ◽  
Matthieu Llorca
Keyword(s):  
Czech Republic ◽  
Fiscal Policy ◽  
Ordinary Least Squares ◽  
Fiscal Sustainability ◽  
European Countries ◽  
Eastern European ◽  
The Czech Republic ◽  
Baltic Countries ◽  
Political Determinants ◽  
Eastern European Countries

This paper aims at assessing the fiscal sustainability and its political determinants in seven Central and Eastern European Countries (CEEC), namely Estonia, Latvia, Lithuania, Poland, Slovenia, Slovakia and the Czech Republic. First, using the recent sustainability approach of Bohn (1998) based on fiscal reaction function, econometric findings using Ordinary Least Squares (OLS) reveal a positive response of the primary surplus to changes in debt in several countries. In other words, fiscal policy is sustainable in Baltic countries, Slovenia and Slovakia, but not in Poland and in the Czech Republic. Second, by introducing political dummy variables, we test the electoral budget cycle and the partisan cycle theories. We find the presence of electoral and partisan cycle in Poland but not in the rest of our countries.

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