Linkages between financial sector and real output – empirical evidence from the Czech Republic
|Author:||Bc. Martin Tomis|
|Year:||2012 - summer|
|Leaders:|| doc. PhDr. Adam Geršl Ph.D.
|Work type:|| Bachelors
|Awards and prizes:||B.A. with distinction from the Dean of the Faculty of Social Sciences for an excellent state-final examination performance and for an extraordinarily good bachelors diploma thesis.|
|Abstract:||This thesis studies various ways in which the financial sector may afect the
real economy. Particular attention is devoted to the bank lending channel
of monetary transmission which amplifies monetary policy through changes
in the supply of bank loans. We analyze the theoretical foundations of this
channel, review international empirical literature and identify characteristic
features of Czech financial system. Due to the important role of bank loans in
the Czech Republic and the limited availability of alternative sources of finance,
we hypothesize that the channel should be operative in the Czech Republic.
Using a VEC model we analyze aggregate data for 2001-2011. Impulse response
functions are then used to identify responses of the lending rate and the amount
of loans to a monetary shock. Based on these responses we conclude the bank
lending channel was operative.
|Downloadable:|| Bachelor Theses of Tomis