Economic Development in the Czech Republic and Selected Countries of Euro Area From 2007 To 2017

This diploma thesis is focused on the analysis of economic development in the Czech Republic and the selected countries of the euro area from 2007 until 2017. It begins with a description of the theory of international economic integration and, in particular, the theory of optimum currency areas as the key theory related to monetary unions. This is followed by description of the most important international agreements concerning the creation and operation the European monetary union and the agreed conditions resulting from them. A comparison of the European Central Bank and the Czech National Bank follows. This was included because these are the key institutions that influence the stability and quality of the currency. The main part of the thesis represents the analysis of the macroeconomic indicators: GDP per capita, balance of trade, inflation, government deficit, gross government debt, labour market, labour productivity and unit labour costs from 2007 to 2017 in the Czech Republic, euro area, Germany, Portugal and Austria. According to these comparative analyses, a transition from the Czech koruna to the euro would not lead to an improvement of the Czech economy situation. In addition, the countries of the euro area chronically break the agreed rules of the international fiscal policies related to the euro area. The conclusion of the thesis is that the Czech koruna is more suitable and profitable for the Czech economy than membership in the euro area.