The worldwide process of Quantitative easing in 2010-2021 in the context of the 2021 Amendment to the Act on the CNB

This thesis focuses on the effects of quantitative easing on macroeconomic variables for selected countries with central banks that apply quantitative easing. Subsequently, it deals more deeply with the theory of inflation in the context of quantitative easing. This unconventional monetary policy tool, which increases the money supply, is gaining increasing intensity of use in the countries of the Western world with certain negative effects such as inflationary pressures and indirect support for fiscal irresponsibility through the purchase of government bonds from the secondary market. These central bank activities are designed to accommodate shocks associated with a drop in economic output, but they create distortions in financial asset markets. In August 2021, an amendment to the Act on the Czech National Bank was adopted, which increases its powers for operations on the free market, i.e. effectively the possibility of a higher volume of quantitative easing. The amendment and its effects will be included in the theoretical part of the work. Furthermore, in the theoretical part, an analysis of central banks applying QE and inflation theory in the context of quantitative easing and the transmission mechanisms of quantitative easing will be presented. Furthermore, the work will deal with the development of GDP, indebtedness, inflation and quantitative easing with their impact on individual economies. Next, Okon's law will be analyzed using the example of the Czech Republic and the metrics of the neoclassical growth model in its basic form.