The subject of this diploma work is to analyze proposals of fiscal consolidations in the Czech Republic and their following implementation in the years of 2002 to 2012. This work is trying to answer a question whether these proposals of the fiscal consolidaions were elaborated in agreement with research conclusions in the given field and whether they were successful in the sense of reduction of a deficit of the public budgets and public debt. In the first part of this work recent empirical studi... show full abstractThe subject of this diploma work is to analyze proposals of fiscal consolidations in the Czech Republic and their following implementation in the years of 2002 to 2012. This work is trying to answer a question whether these proposals of the fiscal consolidaions were elaborated in agreement with research conclusions in the given field and whether they were successful in the sense of reduction of a deficit of the public budgets and public debt. In the first part of this work recent empirical studies with the following recomendations in the terms of realization of a fiscal consolidation are presented. Subsequently, a theoretical background in the form of keynesian and, so called, non-keynesian (expansionary fiscal consolidation hypothesis) effects of consolidation on economy is discussed. In the second part of this work an analysis of the proposals and implementation of the fiscal consolidations in the Czech Republic are presented with an attention to the evolution of the public budgets deficits and the public debt dynamic. The work uses, so called, narrative approach which is based on a study of open public documents from the archives of the Ministry of Finance of the Czech Republic, Parliament of the Czech Republic and the Czech National Bank. In the conclusions of this analysis it is stated that not a single implemented fiscal consolidation was successful in the terms of a reduction of the public budgets deficits and the public debt. |