156-0335/04 – Monetary Policy of Open Economy (MPOE)
Gurantor department | Department of Applied Economics | Credits | 4 |
Subject guarantor | prof. Ing. Lumír Kulhánek, CSc. | Subject version guarantor | prof. Ing. Lumír Kulhánek, CSc. |
Study level | undergraduate or graduate | Requirement | Choice-compulsory |
Year | 1 | Semester | summer |
| | Study language | Czech |
Year of introduction | 2011/2012 | Year of cancellation | 2020/2021 |
Intended for the faculties | EKF | Intended for study types | Follow-up Master |
Subject aims expressed by acquired skills and competences
Student will be able:
- to interpret/answer all questions related to monetary policy realised in the open economy, its theoretical basis and practical implementation;
- to explain bilateral linkages between GDP, exchange rate, inflation rate, money market interest rate etc.;
- to characterise particular exchange rate regimes;
- to critically assess the European process of monetary integration;
- to make conclusions concerning practical monetary policy implementation in the open economy and its impact on the economy (and other macroeconomic policies).
Teaching methods
Lectures
Tutorials
Project work
Summary
TThe course follows the course "Monetary Policy". The content is focused on the monetary aspects of open economy macroeconomics, the classification of exchange rate regimes and the impact on monetary policy, the conduct of monetary policy in the open economy, the Balassa-Samuelson model and effect, the theory and history of monetary integration etc.
Compulsory literature:
Recommended literature:
Way of continuous check of knowledge in the course of semester
E-learning
Other requirements
Students must write a team project and to present and defend it during seminars.
Prerequisities
Subject has no prerequisities.
Co-requisities
Subject has no co-requisities.
Subject syllabus:
1. Introduction.
2. Exchange rate regimes, fixed and floating regimes.
3. Currency board.
4. Dollarization.
5. Exchange rate theory, interest rate parity.
6. Output and exchange rate in the short run, DD-AA model.
7. DD-AA model and fixed exchange rate regime, interventions.
8. Law of one price, purchasing power theory, Balassa-Samuelson model.
9. International monetary system, Bretton-Woods system.
10. European monetary integration.
11. Exchange Rate Mechanism II.
12. Optimum currency area theory - traditional version.
13. Optimum currency area theory - modern version.
14. World financial crisis, originate-to-distribute and originate-to-hold model.
Conditions for subject completion
Conditions for completion are defined only for particular subject version and form of study
Occurrence in study plans
Occurrence in special blocks
Assessment of instruction
Předmět neobsahuje žádné hodnocení.