Prague Economic Papers, 1997 (vol. 6), issue 4

Original contributions, Original article, Research article

Peter F. Drucker awarded honorary doctorate

editors

Prague Economic Papers 1997, 6(4)

On 29th May 1997, the Scientific Council of the University of Economics in Prague called an official session on the occasion of the awarding of the degree of Doctor Honoris Causa to one of the major creators of modern management, Professor Peter F. Drucker.

Remarks of Peter F. Drucker

editors

Prague Economic Papers 1997, 6(4)

In introduction of his speech Drucker remembers his young years. As a son of Austrian lawyer he visited Prague many times. While his father was working with his clients, he walked around and discovered the beautiful city of Prague. A few years later he worked in a small private bank in London, which had many good clients in Czechoslovakia - that time he travelled to Prague maybe three times each year. In conclusion Drucker puts in remembrance the role of University of Economics in this process.

Privatisation as a process of property right redistribution

Karel Kouba

Prague Economic Papers 1997, 6(4) | DOI: 10.18267/j.pep.136

The crucial problem of privatisation, and of the Czech economy transformation in the broad sense cannot be seen in the used forms of property right transformation and in the speed of privatisation and transformation steps. The basic problem consists in an institutional and ethical deficit. The appropriate solutions to growing problems of macroeconomic stability and economy restructuring in these spheres are found in the paper. The Czech economy is suffering by very weak institutional and microeconomic foundation.

Czech republic: outlook of accession to the european union

Luděk Urban

Prague Economic Papers 1997, 6(4) | DOI: 10.18267/j.pep.137

The Czech economy is undergoing two dominant processes: on the one hand transformation process which is far from being finished, on the other hand the Czech Republic is preparing its legislation and takes other measures to be ready for accession to the EU. The process of EU accession is a relationship of two partners who are not in quite an equal position. One party, an associated country aspiring to join the EU, tries to demonstrate that it fulfills the laid down conditions of accession and that it is ready for this act.

Fiscal convergence to the countries of european union and the state burden

Vladimír Benáček

Prague Economic Papers 1997, 6(4) | DOI: 10.18267/j.pep.138

There is no doubt that the same economic regularities are effective in economies in the stage of advanced economic transformation as in traditional market economies. But the low productivity and relics of institutions from the totalitarian system make them very different. Some immature markets of these economies, e.g. labor, money, capital and real property ones, are combined with a huge burden of the non-market public sector, which is mainly borne by budgets of central and local governments. It is not true in any case that any of the former Comecon economies would suffer from an excess of market dictate . It would be worth asking a question to what...

Changing foreign trade patterns in post-reform czech industry (1989-1995) - empirical evidence

Frank Stolze

Prague Economic Papers 1997, 6(4) | DOI: 10.18267/j.pep.139

Summarizing our analysis we must acknowledge that it is still difficult to get a precise picture of the role which different factors play in determining international competitiveness of industrial branches. The most limits of the analysis are as follows: comprehensive data on input intensities of industrial branches were only available for West European countries; the assumptions necessary for a precise forecast of competitiveness positions through RCA-indicators are not been fulfilled; trade patterns are still distorted by production structures and capacities inherited from the planned economy. Although it may be premature to seriously address the...

Conditional variance and fluctuation band

Evžen Kočenda

Prague Economic Papers 1997, 6(4) | DOI: 10.18267/j.pep.140

The exchange rate of the Czech koruna pegged to a currency basket is analyzed. The change of value of the basket is measured by its index. The central point of the analysis is how the change in the fluctuation band of the index affected volatility of the exchange rate. By allowing for a wider fluctuation band, the CNB let the exchange rate fluctuate more freely, thus reducing its potential nominal stability. Because of the fact that the currency basket was introduced to keep a relatively stable nominal exchange rate and to limit its volatility, a further implication is that allowing for a wider fluctuation band should lead to more pronounced movements...

The development of otc and exchange-traded derivatives in the czech republic

Josef Jílek

Prague Economic Papers 1997, 6(4) | DOI: 10.18267/j.pep.141

A market-based financial system relies on the existence of prudential, organizational and protective regulations in order to preserve the safety and soundness of the financial system, to ensure its smooth functioning and to provide adequate protection to the users of financial services. The particular business characteristics of banks have important implications regarding the need for their regulation. The need for bank regulation, given the objective of maintaining confidence in the financial system, arises from the fact that banks are uniquely vulnerable to contagious illiquidity and insolvency collapse and their failures can cause severe negative...