The political business cycle

The main aim of my thesis was to describe the basic resources of political-business cycle and elements which have an influence on it. The tendency to put this phenomenon to a wider context showed us that the political-business cycle is affected by the type of electoral system, increasing power of special interest groups or bureaucratic system. Among the economic elements we can include restrictions of the Government to conduct a monetary policy because of central bank independence. Application of theoretical knowledge to conditions of the Czech Republic proved to be very problematical. Due to the economical transformation the political and economic system in our country demonstrated in non-standard conditions which made the empirical testing of political-business cycle more difficult. In connection with this also comes a problem of short time series which significantly reduces the possibility of any relevant comparison