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Lecturer(s)
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Vaníček Bernard, Ing. Ph.D.
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Černohorská Liběna, doc. Ing. Ph.D.
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Course content
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Balance of payments, concept, structure, balance, factors influencing balance of payments, balancing processes. Exchange rate, its systems, determinants, exchange rate in long and short period, management of exchange rates, fundamental and technical analysis of exchange rate. Foreign exchange reserves, its structure and management, exchange intervention of central bank. Exchange market, its structure, foreign exchange operations - term and prompt, foreign exchange expositions and hazards. Mundell-Fleming model Financial crises. Historical development of international monetary system. European Monetary Union.
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Learning activities and teaching methods
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Monologic (reading, lecture, briefing), Dialogic (discussion, interview, brainstorming), Work with text (with textbook, with book), Methods of individual activities
- Preparation for an exam
- 70 hours per semester
- Participation in classes
- 36 hours per semester
- Preparation for a credit (assessment)
- 20 hours per semester
- Preparation of a presentation (report)
- 24 hours per semester
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Learning outcomes
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The aim of the course is to provide a broader knowledge of international monetary relations in terms of the interconnectedness of microeconomic and macroeconomic perspectives in international financial relations and practical external monetary policy.
A student who has successfully completed the course can: Characterize exchange rates and describe current exchange rate systems; explain the principles on which foreign exchange markets operate; explain foreign exchange operations and the possibilities of hedging against exchange rate risk; distinguish between balance of payments balances, including their interpretation; describe forms of international monetary cooperation; explain the basic context of a small open economy in terms of the needs of the financial analyst; explain the causes, effects and solutions to financial crises; explain the investment position of a country. A student who has successfully completed the course will be able to: Orient themselves to the issues of foreign exchange markets and foreign exchange operations; understand foreign investment; interpret the implications of monetary and fiscal policy in small open economies; understand the interventions of international monetary institutions in individual countries; interpret central bank exchange rate policies in a comprehensible way; forecast future exchange rate movements using fundamental, technical and forward analysis; interpret in a comprehensible way the facts affecting the economic environment in selected countries. A student who has successfully completed the course is able to: Make independent and responsible decisions in model situations; include in problem solving a reflection on the impact on the economy; communicate clearly and persuasively to experts and lay people the nature of technical problems and their own views on their solution.
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Prerequisites
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The student should have knowledge of: - the goods market and the IS curve; the money (asset) market and the LM curve; the IS-LM model - the effectiveness of fiscal policy and monetary policy in the IS-LM model - net exports and equilibrium in the goods and services market in an open economy - the balance of payments, the BP curve - basic problems of exchange rate determination in the long and short run - devaluation (depreciation), current account and income levels - functions and breakdown of capital markets - capital market structure, activities of market operators - indicators for assessing the state and development of the capital market, stock market indices.
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Assessment methods and criteria
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Oral examination, Written examination, Home assignment evaluation, Student performance assessment, Presentation
Credit: 1. presentation of a news item on the topic (maximum 6 points) 2. activity in the exercise (maximum 4 points) Students must earn a minimum of 7 points to receive credit. Examination: oral
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Recommended literature
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Durčáková J., Mandel, M. Mezinárodní finance a devizový trh. Praha, 2020. ISBN 978-80-87865-65-1.
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Gandolfo, G. International Finance and Open Economy Macroeconomics. Berlin: Springer-Verlag, 2016. ISBN 978-3-662-498620.
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Mandel, Martin. Monetární ekonomie v malé otevřené ekonomice. Praha: Management Press, 2008. ISBN 978-80-7261-185-0.
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