Work detail

Financial Stability and the Impact of Instability on the Real Economy

Author: Bc. Štěpán Havránek
Year: 2010 - summer
Leaders: PhDr. Michal Hlaváček Ph.D.
Consultants:
Work type: Bachelors
Language: English
Pages: 64
Awards and prizes:
Link:
Abstract: This thesis focuses on the problematic of financial stability - its maintenance and the detection of possible sources of instability. In the first theoretical part, a summary of the role of financial stability for properly working financial system is followed by identification of threats to stability and historical examples of instability. The thesis continues with an analysis of the recent subprime crisis. In the second empirical part, vector autoregression is used to estimate interconnections between financial instability indicators. This is followed by impulse response analysis. Although some assumed relationships are affirmed, their scop does not answer the fundamental question: why do values of these indicators change so vigorously during the time of distress.

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