Economy in Europe and the business cycle

The bachelor thesis deals with the development of the economy of the Czech Republic and compares it with the states of the European Union. The thesis is composed of two parts, theoretical and practical. The theoretical part deals with the main macroeconomic indicators of the economy including gross domestic product, inflation and unemployment. Furthermore, the thesis describes the economic cycle, its phases and types. The theoretical part also contains characteristic of monetary and fiscal policies and their instruments. And in the last part brings informations about the European Union. The practical part deals with the development of the economy of the Czech Republic from 1993 to 2014. It describes the economic cycle during the development, by using the annual GDP, rate of inflation and unemployment rates. Further the thesis also monitors the indebtedness of the Czech Republic, the efficiency of fiscal and monetary policy and presents hypotheses of the future development of the czech economy. In the second half of the practical part compares the thesis development of economic and the indebtedness of the Czech Republic with selected countries of the European Union. Economic development is again compared by using the main macroeconomic indicators. The last part deals with the efficiency of fiscal and monetary policies of the European Union and predicts future development of economic in the European Union