154-0548/04 Monetary Theory and Policy (2018/2019 ZS)

Course Objectives

Aim of the course is to learn students the abilities to conduct monatary analysis in the light of the present monetary
theory and practical monetary policy by employing fundamental concepts and knowledge of monetary economy.
Students will be able:
- to classify monetary policies,
- to compare assumptions and conclusions of the main theretical approaches,
- to discuss the effects of the changes in monetary variables on macroeconomic system,
- to formulate problems of monetary policy in closed and open economy,
- to evaluate theorethical recommendations for monetary policy and their implications,
- to estimate effects of the applied monetary tools in closed and open economy.

Teaching Methods

Lectures

Annotation

The course is focused on key areas of present monetary economy and policy. It presents and compares types of money
demand and supply, including implications for different strategies of monetary policy, explains approaches of the
theory of money impact and monetary processes on price level, inflation, product and other macroeconomics variables.
In this course the process of monetary policy, objectives, instruments and transmission mechanisms of central bank´s
monetary policy is analysed.

The global financial crisis 2007-2009 has led to changes in the structure of the financial and international monetary
systems. This events caused changes in the way central banks operate, as well. The course provides practical implications
of the global financial crisis in contemporary monetary theory and policy.

Compulsory Literature

MISHKIN, F. S. The Economics of Money, Banking, and Financial Markets. 10th ed. Pearson Education, 2013. ISBN 978-0-13-277024-8.

Recommended Literature

HUBBARD, G. R. and A. P. O´BRIEN. Money, Banking, ang the FinancialSystem. 2nd ed. PrenticeHall, 2013. ISBN 978-0-132-99491-0.

MISHKIN, F. S. Monetary Policy Strategy. Cambridge: MIT Press, 2007. ISBN 978-0-262-13482-8.

WALSH, C. E. Monetary Theory and Policy. 3rd ed. Cambridge: MIT Press, 2010. ISBN 978-02-6201-377-2.

Method of Continuous Control of Knowledge During the Semester

The student gets a credit on the basis of his active work at the seminar - activity in the class, case studies.
Emphasis is placed on a written credit test.

E-learning

http://lms.vsb.cz/course/view.php?id=12418

Syllabus of the Subject

1.    Money and Credits in Economy
2.    Theory of Money Demand
3.    Theory of Money Supply
4.    Interests Rates in Economy
5.    Central Bank
6.    Tools of Monetary Policy and Nonconventional Tools During the Global Financial Crisis
7.    Transmission Mechanism of Monetary Policy 
8.    Monetary Policy Strategy  
9.    Inflation Targeting and Money Base Targeting
10.  Money, Price Level and Inflation
11.  Inflation Expectations and Monetary Policy Efficiency in IS-LM Model
12.  Monetary Policy in Open Economy
13.  Monetary Policy of Selected Central Banks
14.  The Global Financial Crisis of 2007-2009 and Monetary Policy