114-0577/04 – Monetary Economics (MOE)

Gurantor departmentDepartment of EconomicsCredits4
Subject guarantordoc. Ing. Zuzana Kučerová, Ph.D.Subject version guarantordoc. Ing. Zuzana Kučerová, Ph.D.
Study levelundergraduate or graduate
Study languageEnglish
Year of introduction2020/2021Year of cancellation
Intended for the facultiesEKFIntended for study typesFollow-up Master
Instruction secured by
LoginNameTuitorTeacher giving lectures
DVO37 Ing. Kateřina Dvoroková, Ph.D.
KUC20 doc. Ing. Zuzana Kučerová, Ph.D.
Extent of instruction for forms of study
Form of studyWay of compl.Extent
Full-time Examination 2+0

Subject aims expressed by acquired skills and competences

Course provides students with the theoretical building blocks that are needed for an understanding of the monetary theory and contemporary monetary policy implementation. Student will be able: - to describe and explain the main channels of the monetary transmission mechanism, through which monetary policy can have real effects on the economy; - to explain conventional and nonconventional monetary policy; - to define monetary policy within and without monetary union; - to use modelling of monetary policy in open economy.

Teaching methods



Course Monetary Economics provides information about contemporary monetary economics. First, there is explained what is the role of money in market economy, how does modern monetary system look like, what are conventional tools of monetary policy and how transmission mechanisms work. Next, the course deals with unconventional tools of monetary policy. Then, we analyse monetary policy of the Czech National Bank, European Central Bank, Federal Reserve System and other central banks. Last but not least, the course focuses on monetary policy in open economy environment, topics such as monetary policy and exchange rate regimes are also discussed. Finally, there is discussion about monetary policy within and out of monetary union.

Compulsory literature:

MISHKIN, F. S. The Economics of Money, Banking, and Financial Markets. 12th ed. Harlow: Pearson, 2019. 738 p. ISBN: 978-1-292-26885-9. WALSH, C. E. Monetary Theory and Policy. 4th Ed. Cambridge: MIT Press, 2017. 661 s. ISBN: 978-0-262-03581-1.

Recommended literature:

KRUGMAN, Paul R., Maurice OBSTFELD a Marc J. MELITZ. International finance: theory & policy. 11th ed. Harlow: Pearson, 2018. ISBN 978-1-292-23873-9. MISHKIN, Frederic S. a Stanley G. EAKINS. Financial markets and institutions. 8th ed. Boston: Pearson, 2016. ISBN 978-1-292-06048-4.

Way of continuous check of knowledge in the course of semester

The condition for the seminar credit is to prepare a seminar paper. Verification of the learning outcomes will be carried out in the form of a midterm test and final test.


Other requirements

Verification of the learning outcomes will be carried out in the form of a midterm test and final test. Students can gain some credits for their active participation on lectures.


Subject has no prerequisities.


Subject has no co-requisities.

Subject syllabus:

1. The role of money in economy 2. Demand for money 3. Supply of money 4. Interest rates 5. Central bank ant its functions 6. Monetary policy transmission 7. Monetary policy, objectives and instruments, un/conventional MP 8. Monetary policy regimes (inflation targeting, monetary targeting, exchange rate targeting) 9. Monetary policy and exchange rate, interest rate parity 10. Exchange rate and output 11. Exchange rate regimes and monetary policy 12. Monetary integration and monetary policy inside/outside the monetary union 13. Balassa-Samuelson model 14. Financial crises

Conditions for subject completion

Full-time form (validity from: 2020/2021 Winter semester)
Task nameType of taskMax. number of points
(act. for subtasks)
Min. number of points
Examination Examination 100  51
Mandatory attendence parzicipation:

Show history

Occurrence in study plans

Academic yearProgrammeField of studySpec.ZaměřeníFormStudy language Tut. centreYearWSType of duty

Occurrence in special blocks

Block nameAcademic yearForm of studyStudy language YearWSType of blockBlock owner
Incoming students- MS 2021/2022 Full-time English Choice-compulsory 163 - International Office stu. block