Monetary policy of the Czech national bank and targeting inflation

This bachelor thesis deals with problematics of monetary policy of CNB. The first part fastens on detailed explanation of essence, used monetary policy instruments and operational objectives. In a nutshell, it cuts across the requirements for regulations of monetary policy and their various types. The next part of the thesis explains the use of monetary policy in the IS-LM model, which relates concept as demand and supply of money and demand. CNB and its brief history is described in the following part of the thesis. The next part deals with closer characteristics and task, regulation and super vision in Czech banking system. The second part of the thesis deals with inflation and its targeting of the Czech national bank. The term inflation, and terms related to this problematics, are explained in the beginning. Histrory of targeting of inflation, its targets and their fulfilment, is mentioned there. At the end of the the thesis, it briefly concentrates on evolution of inflation and this years prognosis