Consequences of the global economic crisis on the Czech economy

Abstract

This paper studies the ongoing economic crisis and its consequences on the Czech economy. According to most economists the cause of the contemporary crisis was the financial crisis which is triggered by a liquidity shortfall in the United States banking system. It has resulted in the collapse of large financial institutions, the "bail out" of banks by national governments and downturns in stock markets around the world. The Czech economy has been severely hit by the global economic and financial crisis. Massive drop of GDP led to increase in the unemployment rate. After a brief history of the main events and an analysis of their possible causes the paper focused on a real economy analysis. In conclusion, a reminder of the challenges is provided and also some recommendations are suggested.