Template-Type: ReDIF-Article 1.0 Author-Name: Magdalena Kotýnková Title: Long-Term Unemployment in the Czech Republic: Motivation, Obstacles and the Social Assistance System Abstract: Economic transition in the Czech Republic has created a group of long-term unemployed people, many of whom do not actively seek out employment opportunities and instead rely on social assistance. A number of subjective and objective factors contribute to this problem, including the shifting demands of the labour market, regional variation, workers' attitudes and skill level, and the relationship between social assistance benefits and the minimum wage. This article assesses the issue of workers' motivation. Although there are combinations of factors that result in low motivation to search for jobs, the social assistance system is especially at fault and structural changes must be made to better foster workers' engagement and motivation. The problem with the social assistance system is finding the balance between protecting people from poverty and motivating them to work. Keywords: unemployment, long-term unemployment, labour market, social assistance system, unemployment benefits, social assistance benefits, minimum wage, incentive gap Classification-JEL: H55, J64, J68 Pages: 99-112 Volume: 2006 Issue: 2 Year: 2006 File-URL: http://www.vse.cz/pep/279 File-Format: text/html Handle: RePEc:prg:jnlpep:v:2006:y:2006:i:2:id:279:p:99-112 Template-Type: ReDIF-Article 1.0 Author-Name: Petr Sedláček Title: Institutional Conditions of Monetary Policy Conduct in the Czech Republic Abstract: This paper tries to assess the conditions under which the CNB operates. Using a basic framework suggested by Mishkin (2000), the aim is to find out whether the central bank is able to conduct high-quality monetary policy. First, general principles that central banks should follow to succeed in their pursuit of monetary goals are theoretically introduced. Then, these theoretical principles are looked at in the Czech context. Issues of the strictness and suitability of concrete monetary policy of the CNB will not be dealt with, rather institutional circumstances that potentially allow successful policy are at the centre of this paper. It is concluded that the CNB is functioning in a moderately good environment, but still much room for improvement does exist. Keywords: monetary policy, independence, accountability, central bank, institution, price stability, benchmark Classification-JEL: E50, E52, E58, E61 Pages: 113-134 Volume: 2006 Issue: 2 Year: 2006 File-URL: http://www.vse.cz/pep/download.php?jnl=pep&pdf=280.pdf File-URL: http://www.vse.cz/pep/280 File-Format: text/html Handle: RePEc:prg:jnlpep:v:2006:y:2006:i:2:id:280:p:113-134 X-File-Ref: http://www.vse.cz/RePEc/prg/jnlpep/references/280 Template-Type: ReDIF-Article 1.0 Author-Name: Maks Tajnikar Author-Name: Nina Ponikvar Title: National Accounts Data and Macroeconomic Analysis: A Comparative Study of the Czech Republic, Germany, Greece, Ireland and Slovenia Abstract: In this paper there are analysed the characteristics of various important macroeconomic variables in the Slovenian economy and compared with the macroeconomic development in the Czech Republic, Germany, Greece and Ireland in two periods of 1997-1999 and 2000-2002. The main objectives of the paper are to observe changes in the macroeconomic variables of the analysed countries during the observed periods, to determine the sources of any differences in macroeconomic characteristics between Slovenia and the other analysed countries and, finally, to suggest some steps and measures to improve the macroeconomic situation of these countries. Data from national accounts are used in the analysis. In terms of methodology, the paper is based on post-Keynesian economic theory and its long-term economic model of a market economy with private ownership. Based on the analysis it was concluded that in all analysed countries there should be a greater emphasis on tax policy to create an incentive for investing and saving, on incomes policy to control the dynamics of nominal wages, and on technological policy as a prerequisite for improved economic efficiency. Keywords: Slovenia, Czech Republic, Ireland, long-run macroeconomic model, national accounts, post-Keynesian economic theory, Germany, Greece Classification-JEL: B500, E120 Pages: 135-155 Volume: 2006 Issue: 2 Year: 2006 File-URL: http://www.vse.cz/pep/download.php?jnl=pep&pdf=281.pdf File-URL: http://www.vse.cz/pep/281 File-Format: text/html Handle: RePEc:prg:jnlpep:v:2006:y:2006:i:2:id:281:p:135-155 X-File-Ref: http://www.vse.cz/RePEc/prg/jnlpep/references/281 Template-Type: ReDIF-Article 1.0 Author-Name: Štiblar Franjo Author-Name: Oplotnik Žan Author-Name: Vukotić Veselin Title: Montenegrin Quarterly Macroeconomic Econometric Model Abstract: Specific features of quarterly econometric model for Montenegro are dealing with the euroization of the economy, de facto separation of Montenegrin economy from Serbian economy. The model is specified with final demand as driving force of the economic growth, but, in addition, with some specific detail of supply side economics regarding negative role of government expenditures and taxation on some forms of activity. Key features of the model are: inclusion of relevant real and financial sectors of the economy, estimation of labour and capital market, division of labour market on tradable and non-tradable part, creation of activity variable in addition to industrial production and identifying final demand as driving force of the economy. Special features are connected with peculiarities of Montenegrin economy, which include lack of domestic currency and fiscal restraint following Maastricht criteria. Model enables the analysis of measures of monetary, fiscal and some employment policy. The ultimate goal of building model was to describe functioning of Montenegrin economy which needs to be better understood by authorities (government, central bank). Next, model is intended to help identifying and quantifying appropriate measures of economic policy; their quantification should be consistent with the major economic goals authorities declared in their yearly economic policy resolutions. Keywords: macroeconomic models, economic policy, econometric models, transitional economies, Montenegro, economic systems Classification-JEL: C5, E1, E5, P2 Pages: 156-171 Volume: 2006 Issue: 2 Year: 2006 File-URL: http://www.vse.cz/pep/282 File-Format: text/html Handle: RePEc:prg:jnlpep:v:2006:y:2006:i:2:id:282:p:156-171 Template-Type: ReDIF-Article 1.0 Author-Name: Mete Feridun Title: An Investigation of the German Dominance Hypothesis in the Context of Eastern Enlargement of the EU Abstract: This paper is aimed at testing the German Dominance Hypothesis (GDH) in the context of Eastern enlargement of the EU based on the hitherto unexamined former Eastern Bloc countries of Slovakia and Czech Republic using macroeconomic data spanning the period between 1991 and 2004. Cointegration analysis and a vector error correction mechanism validate the GDH. This finding raises the question of what drives these linkages and causes them to register these characteristics. While one could make the case that the Treaty of Maastricht may have caused some form of macroeconomic convergence and thus cointegration, it could also well be argued that, given our country sample and the fact that our data refers to the interbank market, these linkages may be more resulting from changes in the European banking sector and financial markets as the latter prepared for the adoption of the euro and responded to the harmonization of European banking and financial market regulations via the EU Banking Directives. Keywords: integration, German Dominance Hypothesis, vector error correction mechanism Classification-JEL: C32, C52, E43 Pages: 172-182 Volume: 2006 Issue: 2 Year: 2006 File-URL: http://www.vse.cz/pep/download.php?jnl=pep&pdf=283.pdf File-URL: http://www.vse.cz/pep/283 File-Format: text/html Handle: RePEc:prg:jnlpep:v:2006:y:2006:i:2:id:283:p:172-182 X-File-Ref: http://www.vse.cz/RePEc/prg/jnlpep/references/283