The bachelor's thesis deals with the analysis of the fundamental determinants of the nominal exchange rate CZK/EUR. An integral part is the theoretical definition of selected determinants: purchasing power parity, uncovered interest parity and current account balance of the balance of payments. A graphical and empirical analysis follows, where the correlation between the determinants and the exchange rate is confirmed or not with the help of the correlation coefficient and its statistical s... show full abstractThe bachelor's thesis deals with the analysis of the fundamental determinants of the nominal exchange rate CZK/EUR. An integral part is the theoretical definition of selected determinants: purchasing power parity, uncovered interest parity and current account balance of the balance of payments. A graphical and empirical analysis follows, where the correlation between the determinants and the exchange rate is confirmed or not with the help of the correlation coefficient and its statistical significance. The statistical significance of the correlation of the interest differential was confirmed in the case of a 9- and 12-month delay. The expected interest differential is not statistically significant. In the case of the balance of payments, the correlation between the basic balance of the European Monetary Union and the exchange rate was confirmed, whereas the Czech Republic's balance of payments is almost unrelated to the exchange rate. Purchasing power parity does not correlate with the exchange rate. |