Austrian Business Cycle Theory and Its Application to Economy of Euro Area
|Author:||Mgr. Martin Forejt|
|Year:||2019 - summer|
|Leaders:|| PhDr. Michal Hlaváček Ph.D.
|Work type:|| Finance, Financial Markets and Banking
|Awards and prizes:|
|Abstract:||This thesis is aimed at econometric testing of the Austrian business cycle
theory on data from euro area. The thesis consists of two models. First model
tests the hypothesis that decreasing the market interest rate below the natural
interest rate increases consumable output in the short run and decrease in the
long run. The second model examines the effects of changes in interest rates of
different maturities on the structure of production and employment in different
national sectors of production. We reject the first hypothesis in this thesis, but
confirm other two hypotheses.