Monetary policy and its impact on economic growth - case study of the Czech Republic

This thesis deals with the impact of monetary policy on economic growth in the Czech Republic. The work is mainly focused on ways to use regulatory instruments of the central bank. The aim is to find a link between monetary policy and economic growth. The theoretical part introduces the basic concepts of monetary policy, then its objectives, instruments and types of monetary policy, and assumptions of economic growth in the country are presented. Theoretical part also deals with the Mundell-Fleming model and transmission mechanisms. The analytical part contains a comparison of monetary policy in the Czech Republic during several periods, especially in 1993-1997 and 1997-2013, but also touches on the current 2013-2016 period. The main methods that were used in this thesis are analysis and comparison, the conclusions are based on deduction and synthesis of the analysis results. The final chapter of the analytical part of this thesis presents the conclusions and their discussion. It was found that in the small open economy of the Czech Republic export plays a very important export role, which means that the Czech National Bank policymakers are trying to create a monetary policy with respect to the specifics of the state's economy, which determines the direction of the monetary policy in the Czech Republic