Analysis of the Advantages and Disadvantages of the Euro Adoption in the Czech Republic

This bachelor thesis analyses the advantages and disadvantages of adopting the euro in the Czech Republic. I approach this question in a comprehensive manner by dividing the thesis into three parts; theoretical part, methodology and practical part. The first part is the theoretical background, which covers the topic of the creation of the European Economic and Monetary Union (EMU), associated costs and benefits, accession criteria, Optimum Currency Area theory, theories of economic convergence and compliance of the Czech Republic with the euro area. The second part examines the methodology, description of the data base, economic indicators, statistical software and statistical methods. The third part is the practical part, where I use descriptive statistics, growth coefficients, convergence theories, such as beta convergence, sigma convergence, and finally a qualitative comparison of Czech Re-public and Slovakia.