Monetary Theory and Policy
- Credits: 6
- Ending: Examination
- Range: 2P + 2C
- Semester: winter
- Year: 2
- Faculty of Economics and Finance
Teachers
Included in study programs
Teaching results
By completing this course the student should gain the following knowledge, competences and skills:
a) to demonstrate the knowledge of complex terminology of monetary policy
b) to understand theoretical background in the area of money demand and supply, money balance, institutional, strategical and operational framework of monetary policy
c) to communicate on professional level about monetary affairs
d) to demonstrate the ability to create own opinion on monetary development and to take critical stance to real development
e) to demonstrate the creativity in proposing the solutions
f) to find interconnections between monetary policy and other elements of economic policy
g) to be able to absorb the newest knowledge in monetary theory and policy and to expand own possibilities of rational thinking about the monetary development in the global economy
h) to demonstrate the ability to work in team
i) to select and to use appropriate techniques and research methods
j) to be able to collect, to select and to analyze data
k) to take critical stance towards own results as well as to the results of other researchers
l) to formulate understandable and compelling presentations of own results
m) to demonstrate creativity and intellectual curiosity in this specialisation and to utilize them in following study or research
Indicative content
1. Theoretical and empirical definition of money – characteristics of money and currency, types of money, internal and external purchasing power of money, teoretical definition of money, empirical definition of money, monetary agregates
2. Money demand theories – traditional and modern theories
3. Money supply – sources and usage of monetary base, creation of money supply, process of money multiplication
4. Money balance and flation as violation of money balance – definition of money balance, different types of inflation, deflation and their consequencies on monetary policy, measurement of inflation - CPI, HICP, deflator of GDP, inflation targeting
5. Goals, types and rules of monetary policy
6. Strategies of monetary policy – basic, modified and modern transmission mechanisms – monetaristic, interest rate, foreign exchange rate transmission mechanisms, financial accelerator, GDP gap, inflation targeting and modern transmission mechanisms
7. Conventional and unconventional monetary policy
8. Position of central banks in market eonomy with application on ECB, FRS, BOJ and BOE – independence, functions and goals of central banks
9. Teoretical definition of monetary tools funcionality – direct and indirect monetary tools
10. Monetary tools of Eurosystem, FRS, BOJ and BOE
11. Monetary and foreign exchange policy – foreign exchange interventions, management of foreign exchange economy, importance of foreign exchange reserves
12. Central bank and supervision of financial system in relation to financial stability
13. Relationship between monetary and fiscal policy – public debt and deficit in terms of monetary theory and policy, coordination of monetary and fiscal policies in EU and in the world
Support literature
1. Kotlebová, J. – Sobek, O.(2007) Menová politika – stratégie, inštitúcie a nástroje. Bratislava: Iura Edition 2007, ISBN 978-80-8078-092-0
2. Revenda, Z. (2011) Centrální bankovníctví. Management Press 2011, ISBN 978-80-7261-230-7
3. Revenda, Z. a kol. (2011) Peňežní ekonomie a bankovníctví. Management Press 2011, ISBN 978-80-7261-240-6
4. Jílek, J. (2004) Peníze a měnová politika. Praha: Grada Publishing 2004, ISBN 80-247-0769-1
5. Mishkin, F. S. (2012) The Economics of Money, Banking, and Financial Markets. Scott, Foresman and Company 2012, ISBN 978-01-3277-024-8
6. Eatwell, J. - Milgate, M. – Newman, P. (1989) Money. The Macmillan Press Limited 1989, ISBN 978-0-393-95851-5
7. Croushore, D. (2011) M&B. South Western, 2011ISBN 978-11-1182-335-1
8. Handa, J.(2009) Monetary Economics. London: Routledge 2009, ISBN 978-04-1577-210-5
9. Set of case studies provided to students before each seminar
Requirements to complete the course
10% teamwork
20% midterm
70 % final written exam
Total study load (in hours):
26 hours - lectures attendance
26 hours - seminars attendance
13 hours - preparation for seminars
15 hours - preparation for teamwork
25 hours - preparation for midterm
51 hours - preparation for final written exam
Language whose command is required to complete the course
english language
Date of approval: 07.02.2022
Date of the latest change: 21.04.2021