Course: Monetary Policy and Theory

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Course title Monetary Policy and Theory
Course code UEV/FMPT
Organizational form of instruction Lecture + Seminar
Level of course Master
Year of study not specified
Semester Winter
Number of ECTS credits 5
Language of instruction Czech
Status of course Compulsory
Form of instruction Face-to-face
Work placements This is not an internship
Recommended optional programme components None
Lecturer(s)
  • Černohorský Jan, doc. Ing. Ph.D.
  • Černohorská Liběna, doc. Ing. Ph.D.
Course content
The opinions on the essence of money. Monetary theory and money market - money supply and money demand. Effectiveness of the monetary policy transmission mechanism. Regulation and supervision of the banking system. Monetary policy and central bank independence. Monetary policy and financial crisis. Monetary policy regimes and monetary policy rules. Monetary union and optimal currency area. Central bank publications. Central bank balance sheet and profit and loss account. Theory of interest rate determination. Natural and neutral interest rate. Cryptoactive and currency. Monetary policy of selected central banks.

Learning activities and teaching methods
unspecified, Monologic (reading, lecture, briefing), Dialogic (discussion, interview, brainstorming), Work with text (with textbook, with book)
  • Participation in classes - 14 hours per semester
  • Term paper - 50 hours per semester
  • Preparation for an exam - 86 hours per semester
Learning outcomes

A student who has successfully completed the course can: explain different approaches to the essence of money and monetary theory; define the principles of regulation and supervision of the banking system; explain in detail the functioning of monetary policy transmission mechanisms, incl. their shortages in reality; explain current monetary policy approaches; define the use of cryptoactive assets; explain the individual items of the central bank's balance sheet and the links between them. A student who has successfully completed the subject will be able to: interpret the meaning of money in monetary history; explain the current approaches of selected central banks to the conducted monetary policy; interpret the approaches to monetary integration based on the theory of the optimal currency area; interpret the management of the central bank and orientate in its activities; propose an optimal allocation of free funds across the financial market; interpret and recommend monetary policymakers to use their tools to influence underlying macroeconomic variables. A student who has successfully completed the course is able to: clearly and convincingly communicate to experts and laypeople information about the nature of professional problems in the field of money and monetary theory and policy, incl. own opinion on their solution.
Prerequisites
Knowledge from Macroeconomics and Finance.

Assessment methods and criteria
Oral examination, Written examination, Student performance assessment, Self project defence, Presentation

Credit: activity, presentation of a seminar paper Exam: written and oral
Recommended literature
  • ČERNOHORSKÝ, J. Finance: od teorie k realitě. Praha, 2020. ISBN 978-80-271-2215-8.
  • JÍLEK, M. Finance v globální ekonomice I - Peníze a platební styk. Praha: Grada, 2013..
  • JÍLEK, M. Finance v globální ekonomice II - Měnová a kurzová politika. Praha: Grada, 2013..
  • MISHKIN, F. Economics of Money, Banking, and Financial Markets. Harlow: Pearson Education, 2019..
  • MOENJAK, T.:. Central Banking:Theory and Practice in Sustaining Monetary and Finacial Stability. Wiley, 2014.
  • REVENDA, Z. a kol. Centrální bankovnictví. Praha: Management Press, 2015.
  • REVENDA, Z. a kol. Peněžní ekonomie a bankovnictví. 7. vyd. Praha: Ekopress, 2023. Praha. 2023.


Study plans that include the course
Faculty Study plan (Version) Category of Branch/Specialization Recommended year of study Recommended semester