Specification of recent financial crisis in the Czech Republic during 2008-2016 in comparison with previous financial crises, in particular during 1990s

Abstract

This paper is focused on some specific features of recent financial crisis in the Czech Republic. The crisis during 2008-2014 is compared with selected past financial crises, in particular those happening during 1990s. Among issues discussed are roots of financial crises, global imbalances and instruments and provisions aimed to prevent or weaken future crises. The paper shows how changes in global economy may generate financial crises and also change continuously their features and attributes. This study is focused on the Czech economy where the empirical data show a significant delay in the beginning of the recent financial crisis. We find that indicators differing the Czech economy from other Central European economies concerned the real estate market and construction market. The Czech real estate market was not hit by the burst in the first moment and the construction sector index kept growing during all 2009. On the other hand, the Czech economy suffered a double bottom crisis, which struggled the country for almost seven years.