Comparison of the monetary policy of the FED and the CNB and its impact on the national economy in 2000 - 2018

This thesis focuses on a comparative analysis of the monetary policies of the United States Federal Reserve System (the FED) and the Czech National Bank (the CNB). In particular, it examines the influence of both central banks on the national economy between 2000 and 2018. The theoretical part explains the basic principles of monetary policy theory. The practical part deals with an analysis of monetary policy tools employed in both countries. I find that until the financial crisis of 2008, the main monetary policy tool of both central banks was repo operations. Due to the crisis in the financial market, since 2008 the FED has used a wide range of tools of expansionary monetary policy, including quantitative easing, in contrast to the CNB. The CNB also commenced unconventional monetary policy, namely foreign exchange interventions, but much later than the FED. The monetary policy of both central banks exercised in the post-crisis period was based on zero interest rates. I carry out an evaluation of the monetary policy impact on the national economy, primarily using the method of graphical analysis of selected economic indicators in relation to the lagged interbank interest rate. For both economies and for most of the period, I observe the development of economic indicators following the type of monetary policy in line with basic economic principles of monetary policy. Since I analyze a relatively large number of economic indicators, it is unlikely that the observed development of both economies was random in relation to the national monetary policy. The thesis concludes that between 2000 and 2018 the FED and the CNB had a substantial impact on the national economy, while the potency of both central banks to influence the national economy may have been slightly lower in the post-crisis period.