ANALYSIS OF ECONOMIC ACTIVITY MOVEMENTS IN THE CZECH REPUBLIC – FREQUENCY APPROACH

The primary purpose of this work is to identify the business cycle types in the Czech Republic. In the light of business cycles problematic, and viewed from the frequency analysis perspective, harmonic analysis will be used. From the range of de-trending techniques, the first order difference, linear filtering, unobserved component model and Hodrick-Prescott filter are used. In the case of Hodrick-Prescott filter, a cyclical fluctuation estimate with the derivation of smoothing parameter designed specially for the Czech Republic case is investigated. The aim is to distinguish types of cyclical fluctuations in the Czech Republic. A consequent analysis of potential sources of cyclical movement is done.