The Role of Monetary Policy in Pursuing Economic Activity in Selected Transition Countries

The process of transition has brought an urgent need to develop many new market-oriented institutions or in some cases to reconstruct existing ones. One of the most important institutions of western-type economies is a central bank. It fulfils several "public good" functions, the most important of which are the achievement of stable price levels and assuring the financial stability of the economy. Nevertheless, even in economies with a long-standing market tradition, the question of whether a central bank is able to stimulate economic activity or whether all its cyclical actions lead only to changes in price levels remains open. The main purpose of this analysis was to empirically prove or disprove the relation between monetary policy and economic activity in more advanced transition countries. Basing his findings on commonly used econometric methods (causality tests, VAR modelling and simulations, simultaneous equations models), Delakorda concludes that the relation between money and economic activity is a mutual one, as there are significant differences between different countries in the conduct of monetary policy and in the environment of central banks. It is the latter which determines the relation between money and economic activity.

Slovak Policy, 1956-1960

The project looked at crucial political events in Slovakia between 1956 and 1960. 1956 saw the first attempt by Slovak intellectuals to reform the communist regime by increasing the degree of democracy and 1960 was the culmination of the strengthening of the political persecution that began after 1957. The period was characterised by the partial replacement of the informal-political instruments of control over society by formal measures, and the gradual weakening of the role of terror in people's daily life. Marusiak studied the gradual accommodation of the communist regime by the people, analysing the social and political history against the background of political development and of specific aspects such as the conflict of youth and intellectuals with the regime, the collectivisation of agriculture and the liquidation of the rest of the private sector in the economy, public opinion and the changes in the political system, the relations between state and churches, and ethnic problems in Czechoslovakia. He concludes that there was a continuity between the aims and methods used by the communist regime before and after 1953 (or 1956) and that the communist regime in this period remained fundamentally totalitarian.