Vliv finančních frikcí na hospodářský cyklus ČR

The dissertation is focused on testing the influence of financial frictions on the business cycle in the Czech Republic. New Keynesian model of a small open economy (which embeds financial frictions in light of the financial accelerator literature) is extended to account for relevant aspects of the Czech economy. Without explicitly modeling the banking sector, this model serves as a tool for understanding how a negative financial shock may spread to the real economy and how monetary policy may react. To adjust the model structure closer to the evidence stemming from Czech data, Bayesian techniques are used to provide econometric estimates of the model parameters. Ultimately, it is shown that the financial frictions only have a limited impact on the Czech economy, though their effects are time-varying. Financial frictions also potentially increase the volatility of domestic interest rates.