156-0535/01 – Monetary Policy of Open Economy (MPOE)

Gurantor departmentDepartment of Applied EconomicsCredits4
Subject guarantorprof. Ing. Lumír Kulhánek, CSc.Subject version guarantorprof. Ing. Lumír Kulhánek, CSc.
Study levelundergraduate or graduateRequirementChoice-compulsory
Year2Semestersummer
Study languageEnglish
Year of introduction2009/2010Year of cancellation
Intended for the facultiesEKFIntended for study typesFollow-up Master, Bachelor
Instruction secured by
LoginNameTuitorTeacher giving lectures
ADA364 Ing. Emil Adámek, Ph.D.
KUL20 prof. Ing. Lumír Kulhánek, CSc.
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

Student will be able: - to understand conventional and nonconventional monetary policy - to explain exchange rate - to define monetary policy within and without monetary union - to use modelling of monetary policy

Teaching methods

Lectures
Tutorials
Project work

Summary

Subject Monetary Economics provides information about modern 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, seigniorage and independence and transparency of central banks. Also, topics such as monetary policy regimes, monetary policy uncertainty, prices of assets a financial stability are discussed in this course. Moreover, there is discussion about monetary policy within and out of monetary union. Finally, we analyse models of monetary policy and discuss actual questions related with monetary policy of CNB.

Compulsory literature:

WALSH, C. E. Monetary Theory and Policy. 4th Ed. Cambridge: MIT Press, 2017. 661 s. ISBN: 978-0-262-03581-1. MAHADEVA L., STERNE G. Monetary policy framework in a global context. London: Routledge, 2000. 688 s. ISBN: 0-415-22618-X.

Recommended literature:

O'BRIEN, D. P. The development of monetary economics: a modern perspective on monetary controversies. Cheltenham: Edward Elgar Publishing, 2007. 265 s. ISBN: 978-1-84720-260-4. CLAASSEN, E.-M. Global monetary Economics. Oxford University Press, 1996. 323 s. ISBN: 0-19-877464-8.

Way of continuous check of knowledge in the course of semester

Two written tests

E-learning

Další požadavky na studenta

Lectures are compulsory.

Prerequisities

Subject has no prerequisities.

Co-requisities

Subject has no co-requisities.

Subject syllabus:

1. Theory of central banking, functions of central banks. Commercial banking, functions of commercial banks. Two-stage banking system. 2. Monetary policy – goals, tools, monetary base, balance sheet of a central bank and commercial banks. Open market operations, discount tools and its impact on money markets. 3. Money supply, simple multiplier, endogenous and exogenous money supply. 4. International financial markets, types of money markets in an open economy (call money markets, interbank markets, money market securities). 5. Exchange rate theory, exchange rate regimes, foreign exchange interventions. 6. Exchange rate theory. Theory of covered and uncovered interest rate parity. 7. Exchange rate and GDP in the short run, DD-AA model. 8. Test. 9. The law of one price, the Balassa-Samuelson model. 10. Exchange Rate Mechanism ERM II, history, rules, practice, application to “new EU member countries”. 11. World financial crisis, originate-to-distribute model, financial regulation and supervision in the EU and the USA. 12. Optimum currency area theory, traditional and modern version. 13. Presentations of projects 14. Test.

Conditions for subject completion

Full-time form (validity from: 2009/2010 Summer 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.FormStudy language Tut. centreYearWSType of duty
2019/2020 (B6208) Economics and Management (6208R174) European Business Studies P English Ostrava 2 Choice-compulsory study plan
2017/2018 (B6208) Economics and Management (6208R174) European Business Studies P English Ostrava 2 Choice-compulsory study plan
2016/2017 (B6208) Economics and Management (6208R174) European Business Studies P English Ostrava 2 Choice-compulsory study plan
2015/2016 (N6202) Economic Policy and Administration (6202T010) Finance P Czech Ostrava 1 Choice-compulsory study plan
2015/2016 (N6202) Economic Policy and Administration (6202T010) Finance P English Ostrava 1 Choice-compulsory study plan
2014/2015 (B6208) Economics and Management (6208R174) European Business Studies P Czech Ostrava 2 Choice-compulsory study plan
2014/2015 (N6202) Economic Policy and Administration (6202T010) Finance P Czech Ostrava 1 Choice-compulsory study plan
2014/2015 (N6202) Economic Policy and Administration (6202T010) Finance (01) Finance P Czech Ostrava 1 Choice-compulsory study plan
2013/2014 (N6202) Economic Policy and Administration (6202T010) Finance (01) Finance P Czech Ostrava 1 Choice-compulsory study plan
2013/2014 (B6208) Economics and Management (6208R174) European Business Studies P Czech Ostrava 2 Choice-compulsory study plan
2012/2013 (B6208) Economics and Management (6208R174) European Business Studies P Czech Ostrava 2 Choice-compulsory study plan
2012/2013 (N6202) Economic Policy and Administration (6202T010) Finance (01) Finance P Czech Ostrava 1 Choice-compulsory study plan
2011/2012 (B6208) Economics and Management (6208R174) European Business Studies P Czech Ostrava 1 Choice-compulsory study plan
2010/2011 (N6202) Economic Policy and Administration (6210T004) European Integration (00) European Integration P Czech Ostrava 1 Choice-compulsory study plan
2010/2011 (B6208) Economics and Management (6208R174) European Business Studies P Czech Ostrava 1 Choice-compulsory study plan
2010/2011 (B6208) Economics and Management (6208R174) European Business Studies P Czech Ostrava 2 Choice-compulsory study plan
2010/2011 (N6202) Economic Policy and Administration (6202T010) Finance (01) Finance P Czech Ostrava 1 Choice-compulsory study plan
2009/2010 (N6202) Economic Policy and Administration (6202T010) Finance (01) Finance P Czech Ostrava 1 Choice-compulsory study plan

Occurrence in special blocks

Block nameAcademic yearForm of studyStudy language YearWSType of blockBlock owner
Incoming students - master study 2018/2019 Full-time English Choice-compulsory 163 - International Office stu. block
Incoming Students 2017/2018 Full-time English Choice-compulsory 163 - International Office stu. block
Incoming Students 2016/2017 Full-time English Choice-compulsory 163 - International Office stu. block
Incoming Students 2015/2016 Full-time English Choice-compulsory 163 - International Office stu. block
Incoming Students 2014/2015 Full-time Czech Choice-compulsory 163 - International Office stu. block
Incoming students 2013/2014 Full-time Czech Choice-compulsory 163 - International Office stu. block
Incoming Students 2012/2013 Full-time Czech Choice-compulsory 163 - International Office stu. block