154-0548/04 – Monetary Theory and Policy (MTP)

Gurantor departmentDepartment of FinanceCredits3
Subject guarantorprof. Ing. Lumír Kulhánek, CSc.Subject version guarantorprof. Ing. Lumír Kulhánek, CSc.
Study levelundergraduate or graduateRequirementCompulsory
Study languageEnglish
Year of introduction2015/2016Year 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 2+1

Subject aims expressed by acquired skills and competences

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



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.

Way of continuous check of knowledge in the course of semester

Activity during seminars, case studies Credit test



Další požadavky na studenta

There are no other requirements on the students.


Subject has no prerequisities.


Subject has no co-requisities.

Subject syllabus:

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

Conditions for subject completion

Full-time form (validity from: 2015/2016 Winter semester)
Task nameType of taskMax. number of points
(act. for subtasks)
Min. number of points
Credit Credit 85 (85) 85
        Writen test Written test 85  85
Mandatory attendence parzicipation:

Show history

Occurrence in study plans

Academic yearProgrammeField of studySpec.FormStudy language Tut. centreYearWSType of duty
2019/2020 (N6202) Economic Policy and Administration (6202T010) Finance P English Ostrava 2 Compulsory study plan
2018/2019 (N6202) Economic Policy and Administration (6202T010) Finance P English Ostrava 2 Compulsory study plan
2017/2018 (N6202) Economic Policy and Administration (6202T010) Finance P English Ostrava 2 Compulsory study plan
2016/2017 (N6202) Economic Policy and Administration (6202T010) Finance P English Ostrava 2 Compulsory study plan
2015/2016 (N6202) Economic Policy and Administration (6202T010) Finance P English Ostrava 2 Compulsory study plan

Occurrence in special blocks

Block nameAcademic yearForm of studyStudy language YearWSType of blockBlock owner