Monetary Policy of the European Central Bank and Its Theoretical Resources in the View of Postkeynesian Economy

The paper deals with the monetary policy of the European Central Bank and its effects on economic development of the Czech economy and other new members of EU from the perspective of Post-Keynesian monetary economics. In the first part the basic principles of contemporary Post-Keynesian monetary theory of relative endogeneity of money are shortly presented. The second part concentrates on the Post-Keynesian criticism of the institutional arrangement of the ECB and its monetary policy. The closing part treats issues concerning potential effects of the policy of ECB in the given institutional framework on economic development of the Czech economy and economies of other less developed members of EU after joining the Eurozone. Possible adverse effects on the process of real convergence are discussed and alternative policies eliminating this danger are presented.