Price bubbles in a framework of monetary policy and international movement of capital

The aim of this thesis is an ex post explanation of price bubbles at real estate market that is built in a framework of international movement of capital and mainly corresponds to a point of view of central banks and should lead to a choice of an optimal political mix with the lowest probability of emerge of asset price bubble. We will take a look at speculative bubbles from a point of view of subjects in economy (a behavior explanation) in the first chapter. Here we will discuss possible behavioral reasons why price bubbles emerge, phases of price bubbles and consequences of price bubbles including relations to bank crises. In the next chapter, we will examine the importance of asset prices for an economy output. In this chapter we will also discuss asset price monitoring by central banks and ask a question about interventions into asset prices. In the third and fourth chapter we will observe international movement of capital and its consequences for asset price bubbles due to a sudden increase and decrease of these flows. Within the scope of international movement of capital we will discuss factors that influence vulnerability of economies in terms of the capital movement including impact on a balance of payment, which can be seen as an indicator of a price bubble in an affected economy. The last chapter is focused on demonstrating presented relations and indicators for asset price bubbles on some real data of developing countries from Central and Eastern Europe.