Investing in Real Estate in the Czech Republic and Analyzing the Dependence of Profitability and Technical and Socio-Economic Factors

Self Cite

The paper deals with the issue of unavailability housing in the Czech Republic, which affects an increasing number of people. As a result of the covid-19 pandemic, there has been a significant increase in property prices and widening the price to income gap, which mainly affects young people. This paper describes the basic causes of this undesirable phenomenon in society and provides recommendations that should be quickly adopted by the state and municipalities to improve the situation as we see a risk of an increase in social tension in society and a deterioration in the availability of employment for low-income professions.

Section: Discussionmentioning

confidence: 99%

Financial Unavailability of Housing in the Czech Republic and Recommendations for Its Solution

Hromada¹

2021

Self Cite

“…If this situation is long-term, there is a risk that the CBs will come into conflict with other tasks, in particular maintaining financial stability. The result observed in recent years are bubbles in the stock or bond market (Klieber, 2021), commodities market (as documented by Čermáková, 2021) or the real estate market (as documented by Hromada, 2021), or wage pressures across industries as demonstrated by the study of Kadeřábková (2020).…”

Section: Discussionmentioning

confidence: 99%

Comparison of the Approach of the Czech National Bank and the European Central Bank to the Effects of the Global Financial Crisis

Čečrdlová¹

2021

The latest global crisis, which fully erupted in 2008, can have a significant impact on central banks credibility in the long run. During the last crisis, monetary authorities encountered zero interest rate levels and, as a result, started to use non-standard monetary policy instruments. The Czech National Bank decided to use a less standard instrument in November 2013, when it started to intervene on the foreign exchange market in order to keep the Czech currency at level 27 CZK / EUR. However, the European Central Bank also adopted a non-standard instrument, when chose a path of quantitative easing in 2015 in order to support the euro area economy by purchasing financial assets. The question remains whether the approach of Czech National Bank or the approach of European Central Bank in the crisis and post-crisis period was a more appropriate alternative. With the passage of time from the global financial crisis, it is already possible to compare the approaches of these two central banks and at least partially assess what approach was more appropriate under the given conditions. When comparing the central banks approaches to the crisis, the Czech National Bank was better, both in terms of the rate of interest rate cuts and the resulting inflation with regard to the choice of a non-standard monetary policy instrument. The recent financial crisis has revealed the application of moral hazard in practice, both on behalf of the European Central Bank and the Czech National Bank, which may have a significant impact on their credibility and independence in the coming years.

“…This feature is a heritage from the communist era and is connected to the tradition of low labour mobility. Households in V4 countries by tradition own their housing (Hromada, 2021) and are reluctant to commute ( Kadeřábková, 2019).…”

Section: Conclusion and Analysesmentioning

confidence: 99%

Ambiguous effects of minimum wage tool of labour markets regulation – key study of V4 countries

Jašová¹

2021

In this paper we analyze the effect of minimum wage change on selected labour market indicators such as duration of employment, hours worked, unemployment by education or profession or long-term unemployment. Our research is based on Eurostat and OECD data for V4 countries. The hypothesis discussed is whether the effect of minimum wage increase is positive or negative and we discuss the issue of economic regulation more generally. The output values of the regressions coefficients of all the V4 countries showed that the effects are more positive than negative. Mapping the overall intensity of effects of the minimum wage on selected indicator of the labour market in the Czech Republic and Hungary indicated a low sensitivity. The effects were very weak in Slovakia and Poland. The results of the analysis complied with the results of the domestic and international research in 13 cases and the results were different in 6 cases. Slightly more often they confirmed more positive effects of the minimum wage on selected indicators of the labour market than negative effects.