The International Science Conference “30 Years of Economic Development in the Czech Republic” was held on the eve of the 30th anniversary of the Velvet revolution and in connection with the celebration of the 20th anniversary of foundation of Vysoká škola finanční a správní. The university invited the following persons as key note speakers: Prof. Václav Klaus who gave a lecture on “30 Years of Economic Transformation of the Czech Republic” and prof. Otmar Issing who contributed with his paper on “20 Years of Euro”.
The conference, held November 15 2019 in the Congress Center of ČNB (Czech National bank), was started by Bohuslava Šenkýřová, the Rector, presenting a brief, however apt, summary of the development of Czech economy since 1989. In her conclusion she stated: “If it holds true that we have experienced 30 years full of changes in the society, politics and economy, then I am sure that the next 30 years will be as unsettled as the previous ones.”
Jiří Rusnok, the Governor of the Czech National Bank, continued with his paper on “Currency Milestones of the Last 30 Years through the Eyes of ČNB” in which he, besides other things, summarised a variable role of a crown in the course of time. Its role between 1991 - 1997 as one of a few existing nominal anchors, in 1997, 2002 and 2008 as a source of currency shocks, in 2009 as a cushion absorbing a negative external market demand shock and finally as an unconventional tool of currency policy during the restriction caused by lower zero bound situation. The Governor also commented on the single European currency. In his view, its benefit is the support of foreign market, while its weak point is an uncompleted eurozone shape and its political character. His conclusion was quite clear: “The own currency is an advantage if you know how to deal with it.”
In his paper Václav Klaus got back to the events of November 1989 which he regards as unique historic moments that deserve to be reminded and celebrated. Before the own topic on economic transformation he inevitably returned to the previous times in order to point out that “the Czech Republic benefited the least from all the countries with a similar fate from the extensive model of economic growth, which was an attribute and unavoidable consequence of the centrally planned economy mechanism”. In his view the November 1989 necessitated not only better economic policy but also a radical system change and fundamental transformation of the economic and political system. According to Václav Klaus “the transformation of the nineties was about a qualitative change of our country”. And he anticipates the same change to come toward the future. “I am convinced that there must be a system change again, the dictatorship of politics over economy, to which we dangerously incline, must be abolished”. Just as the Governor, Václav Klaus pointed out an excessive stress on politics of the European Union and, in his view, its dangerous policy of subsidizing.
Otmar Issing, the Head of the Institute of International Economic Relations at the University of Erlangen in Nuremberg, was the second key speaker. He took a critical stance on eurozone and European Central Bank (ECB) operation. Besides other things, he criticised negative interest rates of ECB.
The subsequent panel discussion moderated by Petr Budinský, the Vice-Rector of VŠFS, gave rise to a range of interesting topics. The guests of the panel discussion were Karel Havlíček, Deputy Prime Minister and Minister of Industry and Trade, and Miroslav Singer, the main economist of Generali CEE Holding. Karel Havlíček reminded that in the nineties, when the Czech economy was going through a fundamental transformation, nobody had practical experience with free trading, free market, granting credits, etc. In his view, it was not possible to privatize the former 3.5 thousands of companies and put them into Czech hands, since the country lacked managers. Miroslav Singer agreed that these days politics dominates all areas of life, including economy. He also thinks that politics may develop in the direction which will not be favourable for us.
This traditional November scientific conference is always connected with awarding the Prize of František Vencovský. Since this year it has been intended for doctoral students and postgraduates who finished their studies no later than two years ago.
The price is divided into two sections while winners of each get a cheque of 100,000 CZK. The VŠFS pays the money from its scholarship fund. This year 25 studies which had to meet all demanding criteria were accepted for both sections. This has been a record number of accepted studies.
Dominika Ehrenbergerová and Simona Malovaná (Faculty of Social Science, Charles University) were prizewinners of the theoretical section in this competition. They were successful with their study The Effect of Higher Capital Requirements on Bank Lending: The Capital Surplus Matters. In this study they focus on the impact of additional capital requirements on the interest growth of private banks of the Czech Republic. The prize in the section of practically oriented research was awarded to Jakub Grossmann who contributed with his study “Impact of Minimal Wage Increase on Wages and Employment Rate of the Czech Republic”.
