156-0535/04 – 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 graduate
Study languageEnglish
Year of introduction2019/2020Year of cancellation
Intended for the facultiesEKFIntended for study typesFollow-up Master
Instruction secured by
LoginNameTuitorTeacher giving lectures
ADA364 Ing. Emil Adámek, 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

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

Project work


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

Oral exam


Other requirements



Subject has no prerequisities.


Subject has no co-requisities.

Subject syllabus:

1.Role of money in market economy 2.Modern monetary system 3.Conventional monetary policy 4.Transmission mechanisms of monetary policy 5.Unconventional monetary policy 6.Seigniorage and fiscal dominance 7.Independence, transparency and responsibility of central banks 8.Monetary policy regimes [inflation targeting, money supply targeting, currency targeting] 9.Monetary policy and exchange rate 10.Monetary policy uncertainty 11.Monetary policy, prices of assets and financial stability 12.Monetary policy within and without monetary union 13.Modelling monetary policy 14.Monetary policy of Czech National Bank

Conditions for subject completion

Full-time form (validity from: 2019/2020 Winter semester)
Task nameType of taskMax. number of points
(act. for subtasks)
Min. number of points
Examination Examination 100  51
Mandatory attendence parzicipation: xxxxxxxxxxxxxxxxxxxxxxx

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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 - master study 2019/2020 Full-time English Choice-compulsory 163 - International Office stu. block