120-0569/01 – International Monetary Integration (IMI)

Gurantor departmentDepartment of European IntegrationCredits5
Subject guarantorprof. Ing. Lumír Kulhánek, CSc.Subject version guarantorprof. Ing. Lumír Kulhánek, CSc.
Study levelundergraduate or graduateRequirementCompulsory
Year1Semestersummer
Study languageEnglish
Year of introduction2019/2020Year of cancellation
Intended for the facultiesEKFIntended for study typesFollow-up Master
Instruction secured by
LoginNameTuitorTeacher giving lectures
DVO37 Ing. Kateřina Dvoroková, Ph.D.
KUL20 prof. Ing. Lumír Kulhánek, CSc.
Extent of instruction for forms of study
Form of studyWay of compl.Extent
Full-time Credit and Examination 2+2

Subject aims expressed by acquired skills and competences

1. Define the principles of the theory of optimal currency area. 2. Clarify the functioning of historical and current monetary unions in the world. 3. Examine central bank decisions. 4. Analyze monetary integration in Europe. 3. Propose managerial decisions according to the current development of international economic policy. 4. Predict the future development of basic macroeconomic indicators.

Teaching methods

Lectures
Tutorials

Summary

Students learn the theoretical framework for examining the optimality of currency areas. The core of the subject is the theory of monetary integration, the analysis of historical and contemporary monetary unions in the world. The subject also includes analysis of monetary integration in Europe, the institutional framework of the European System of Central Banks and the assessment of the position of the euro area in the world economy.

Compulsory literature:

GRAUWE, Paul de. Economics of Monetary Union. 11th ed. Oxford: Oxford University Press, 2016. 280 p. ISBN 978-01-987-3987-6. MISHKIN, Frederic S. The Economics of Money, Banking and Financial Markets. 11th ed. Essex: Pearson, 2015. 704 p. ISBN 978-0133836790. RØSTE, Ole B. Monetary policy and macroeconomic stabilization: the roles of optimum currency areas, sacrifice ratios, and labor market adjustment. New Brunswick, N.J.: Transaction Publishers, 2008. 216 p. ISBN 978-1412807487.

Recommended literature:

ENOCH, Ch., W. BOSSU, C. CÁCERES a D. SINGH. Financial integration in Latin America: a new strategy for a new normal. Washington, DC: International Monetary Fund, 2017. 226 p. ISBN 978-1513520247. KUFUOR, Kofi O. The institutional transformation of the economic community of West African states. London: Routledge, 2017. 190 p. ISBN 978-0754644880. MÜLLER, Philipp. China as an Optimum Currency Area - Something to learn for the European Monetary Union?. Munich: GRIN Verlag, 2013. 60 p. ISBN 978-3656372950.

Way of continuous check of knowledge in the course of semester

Credit - active participation in seminars, presentation Exam - combined exam (written and oral)

E-learning

The course is part of the LMS Moodle.

Další požadavky na studenta

Study of literature in English.

Prerequisities

Subject has no prerequisities.

Co-requisities

Subject has no co-requisities.

Subject syllabus:

1. Optimal currency area theory - definition of optimal currency area, classical theory of optimal currency area, new Mundell model of optimal currency area, development of theory of optimum currency area. 2. Cost Analysis of Monetary Union - Inflation vs. Unemployment, institutional differences in labor markets, differences in economic growth dynamics, differences in legal and financial systems, Balassa-Samuelson effect. 3. Common currency benefits - elimination of transaction costs, price transparency, elimination of exchange rate risk, growth of mutual trade and economic growth. 4. Costs and benefits of the common currency - comparison - endogenity of the monetary integration process, model GG-LL, marginalist approach to OCA and cost-benefit analysis, impact on wealth level 5. Asymmetric shocks in the monetary union - definitions and types of asymmetric shocks, alignment of business cycles, labor mobility, symmetric shocks with asymmetric impacts. 6. Historical Monetary Union - Germany-Austrian Monetary Union, Latin Monetary Union, Scandinavian Monetary Union, Belgian-Luxembourg Monetary Union, Czech-Slovak Monetary Union. 7. Current Monetary Union in the World - United Nations Union of South American Nations (UNASUR), East Caribbean Monetary Union, West African and Central African Monetary Union, Monetary Union of the CFP franc. 8. The most important de facto monetary union in the world - United States of America, Swiss franc, Russian ruble, Indian rupee. 9. The history of monetary integration in Europe - the Werner report - the snake in the tunnel, the European monetary system. 10. Implementation of a common European currency project - Delors report, Maastricht Treaty, convergence criteria, reasons for non-membership of Sweden, Denmark and the United Kingdom of Great Britain and Northern Ireland. 11. The European Central Bank (ECB) - the institutional framework of the European System of Central Banks (ESCB) and the ECB, the ECB's monetary policy strategy. 12. ECB Monetary Policy Instruments - the ECB's standard monetary policy instruments, the ECB's non-standard monetary and policy instruments. 13. Admission of new members to the European Monetary Union - the process of real and nominal convergence. 14. Position of the euro area in the world economy - economic comparison of the euro area with the US, comparison of the US dollar and the euro position in the international monetary system.

Conditions for subject completion

Full-time form (validity from: 2019/2020 Summer semester)
Task nameType of taskMax. number of points
(act. for subtasks)
Min. number of points
Credit and Examination Credit and Examination 100 (100) 51
        Credit Credit 35  18
        Examination Examination 65  33
Mandatory attendence parzicipation: Credit - active participation in seminars, presentations Exam - combined exam (written and oral)

Show history

Occurrence in study plans

Academic yearProgrammeField of studySpec.FormStudy language Tut. centreYearWSType of duty
2019/2020 (N0311A050012) Applied economics (S01) International Economic Relations P Czech Ostrava 1 Compulsory study plan
2019/2020 (N0311A050013) Applied Economics (S02) International Economic Relations P English Ostrava 1 Compulsory study plan
2019/2020 (N0412A050005) Finance P English Ostrava 1 Choice-compulsory type B study plan

Occurrence in special blocks

Block nameAcademic yearForm of studyStudy language YearWSType of blockBlock owner