The main task of the book is to describe the overall process of the Czech economic transformation. The text covers the process since the beginning of the 1990s or in fact since the end of the centrally planned economy whose principals are described in the first chapter. The following chapters are targeted at the main topics of the transformation – overall view of the process; political development; economic policy, economic results (development of the GDP; inflation; unemployment); development of the outside indicators (balance of payment); privatization; development of the bank sector; changes of the business sector and institutional development. In the last chapter I evaluate the whole period since the beginning of the 1990s till our admitting to the European Union. My evaluation is generally positive with a few important exceptions that are on the other hand quite understandable because it is impossible to go through such a difficult process without making mistakes. I concentrate on the most important, critical and turning points in the development. If there was a discussion about a specific problem among economists; I try to present both sides views of the conflict to let the reader decide objectively. The book is written in a simple way that is easy to understand. When some more sophisticated theory or terminology is used (for example real exchange rate) it is explained in a case study.