16th February 2023

AmChamIntel looked into possible path of inflation and Czech koruna, and the root causes of today’s volatility

The higher cost of money increases the risk for those who decide to pay that cost, and eliminates opportunity for those who decide not to. This will have a complex effect on the economy. Reducing the number of credit transactions will lower economic activity (especially for low margin opportunities in the market and for smaller companies without the assets to negotiate better terms from banks). That may contribute to lower inflation, but it will also influence in the economy in other ways- including making life very tough on small, local businesses. 

Read full text.


Thank you to AmCham members for the insightful exchange on the Czech business environment nowadays.

Members of the American Chamber of Commerce in the Czech Republic