Price of long-term assets

The price dynamics of long-term assets in the Czech Republic are determined by the parallel influence of certain factors. One of them - in the narrowe r sense called asset price inflation or deflation - are bubble effects. The y stem, mainly in the financial sector, from inappropriate institutional st ructures and poor corporate governance. Bubbles may also reflect the distor ted relation between tradables and nontradables in the Czech economy. Here we need to identify the effects of price regulation. Another distorting fac tor is the significant imbalance of real estate volumes allocated in the ec onomy in the communist regime and the demand for such assets.