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Currency separation of Czechoslovakia in 1993 - any lessons for the Euro area?
Thesis title in Czech: Rozdělení československé měny v roce 1993 a jeho relevance pro eurozónu
Thesis title in English: Currency separation of Czechoslovakia in 1993 - any lessons for the Euro area?
Key words: měnová odluka, optimální měnová zóna
English key words: currency separation, optimum currency area
Academic year of topic announcement: 2012/2013
Type of assignment: Bachelor's thesis
Thesis language: angličtina
Department: Institute of Economic Studies (23-IES)
Supervisor: doc. Mgr. Tomáš Holub, Ph.D.
Author: hidden - assigned by the advisor
Date of registration: 28.02.2013
Date of assignment: 06.05.2013
Date and time of defence: 09.09.2014 08:00
Venue of defence: IES
Date of electronic submission:31.07.2014
Date of proceeded defence: 09.09.2014
Reviewers: Mgr. Pavla Růžičková
URKUND check:
We suppose that the separation of Czechoslovak currency union had besides its political reasons also economic reasons. We also suppose that the Czechoslovak currency separation was technically and organizationally easier as the financial interconnectedness was not deep. Finally, we suppose that the separation of European Monetary Union would imply greater impact to the global economic development and its overall costs would outweigh its benefits.

We compare the development of economic indicators relevant for the theory of optimal currency area as incentive to separate currency union and discuss the Czechoslovak separation in the context of Eurozone situation.
1) Čapek, A., A. Kotulan & O. Dědek (1992): Otázky měnové spolupráce mezi nástupnickými státy ČSFR." Výzkumné publikace Institutu ekonomie Státní banky československé, Státní banka československá.

2) Dědek, O. (1996): \The break-up of Czechoslovakia: an in-depth economic analysis.", Avebury.

3) Fidrmuc, J. & J. Horvath & J. Fidrmuc (1999): Stability of Monetary Unions: Lessons from the Break-up of Czechoslovakia." ZEI Working Papers, ZEI - Center for European Integration Studies, University of Bonn.

4) Nordvig, J. & N. Firoozye (2012): Rethinking the European monetary union.", Policy Exchange.

5) Prokop, L. (1994): Příprava a průběh měnové odluky v České republice v r. 1993." Working papers, Česká národní banka.
Preliminary scope of work in English
The economic recession from 2008 intensified the process of divergence between Eurozone's core and peripheral Eurozone's states. The single currency limits the possibilities to solve this problem, thus the economic community began to talk about the currency separation. Within the light of current developments, the currency separation seems not to be an urgent topic anymore. However, in the future we should be theoretically prepared for such a situation. One of the starting points is the empirical knowledge of the currency separation of Czechoslovakia in 1993.
This thesis analyses important aspects of Czechoslovak currency separation, its incentives, technical and organizational solutions and the total expense of the operation. The main contribution of this work is (i) comparing the situation in the Czechoslovak Republic before the currency separation in 1993 with the situation in Euro area after 2008 and describing its similarities, (ii) analytical view of a possible application of the solutions used within the separation of the Czechoslovak currency in the context of the Euro area states, and (iii) discussion about possible gains from leaving the European Monetary Union.

1) Introduction
2) Theoretical and empirical description of separation of Czechoslovak currency
a. Economic reasons of the currency split
b. Technical and organizational preparation
c. Realization of the currency separation
d. Clearing system
3) Similarities and differences in conditions within the Euro area
a. Incentives economic divergence in post-crisis period
b. Possibilities of usage of the same technical solution
4) Discussion about benefits and costs of the monetary union separation
5) Conclusion
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