114-0360/01 – Monetary theory and policy (MTP)
| Gurantor department | Department of Economics | Credits | 4 |
| Subject guarantor | doc. Ing. Zuzana Kučerová, Ph.D. | Subject version guarantor | doc. Ing. Zuzana Kučerová, Ph.D. |
| Study level | undergraduate or graduate | Requirement | Compulsory |
| Year | 2 | Semester | summer |
| | Study language | Czech |
| Year of introduction | 2020/2021 | Year of cancellation | |
| Intended for the faculties | EKF | Intended for study types | Bachelor |
Subject aims expressed by acquired skills and competences
Aim of the course is to teach students the abilities to conduct monetary analysis in the light of the contemporary monetary theory and practical monetary policy by employing fundamental concepts and knowledge of monetary economics. Students will be able: - to classify monetary theories, - to compare assumptions and conclusions of the main theoretical approaches, - to discuss the effects of the changes in monetary variables on macroeconomic system, - to formulate problems of monetary policy both in closed and open economy, - to evaluate theoretical recommendations for monetary policy and their implications, - to estimate effects of monetary instruments application in closed and open economy.
Teaching methods
Lectures
Tutorials
Summary
The course if focused on key areas of contemporary monetary theory and policy. It presents and compares theories of money demand and supply, including implications for different strategies of monetary policy. It explains approaches to the impact of money and monetary processes on expectations, price level, inflation, product and other macroeconomics variables. Moreover, monetary policy process is deeply analyzed, monetary policy objectives, instruments and transmission channels of monetary policy decisions are studied. The course also provides overall summary of monetary policy evolution in the Czech Republic and in the world with attention to contemporary trends.
Compulsory literature:
Recommended literature:
Way of continuous check of knowledge in the course of semester
A student is expected to attend seminars where it is possible to collect points for activities during seminars. Credit: max. 35 points, min. 18 points. Points collected during seminars are then added to points gained during an oral exam.
Oral exam: max. 65 points.
Total result: max. 100 points, min. 51 points.
ISP and Erasmus+: Student is asked to write a seminar work at a given topis. Oral exam.
E-learning
Other requirements
Active participation in exercises. Self-study of recommended literature
Prerequisities
Subject has no prerequisities.
Co-requisities
Subject has no co-requisities.
Subject syllabus:
1. Bank institutions, historical background.
2. Money, definition, forms, monetary aggregates.
3. Financial System, Functions and Structure of Financial Markets.
4. Electronic money, electronic payments, electronic banking.
5. Digital revolution and impact on MP. Cryptocurrencies, digital currencies, CBDC.
6. Central bank and its functions.
7. Banking systems and history of banking in the Czech Republic.
8. Monetary Policy Objectives and transmission mechanisms.
9. Monetary policy instruments.
10. Financial stability, macroprudential policy.
11. Inflation targeting and inflation expectations.
12. Forex interventions.
13. Balance of payments.
Conditions for subject completion
Occurrence in study plans
Occurrence in special blocks
Assessment of instruction