Monetary Economics and Policy

Vztahy:

Předmět 32ME-P-MEPO-01 nesmí být zapsán, je-li v témže semestru zapsán anebo již dříve absolvován předmět G63E4201 (vztah je symetrický)

Předmět 32ME-P-MEPO-01 může při kontrole studijních plánů nahradit předmět G63E4201

Garant předmětu:

Aliya Algozhina

Přednášející:

Aliya Algozhina

Cvičící:

Aliya Algozhina

Předmět zajišťuje:

institut ekonomických studií

Anotace:

This course provides the main concepts of monetary economics, emphasizing how monetary policy can affect the domestic economy. It consists of three major parts. The first part starts with the definition of money, its functions, and its measures in the form of monetary aggregates’ statistics compiled by central banks. It leads then to the inner workings of financial markets, particularly the interest rate dynamics of bonds and stocks. The second part focuses on the practical conduct of monetary policy. How money supply is created, what monetary policy tools affect the market interest rate, and how central banks can intervene in the foreign exchange market to regulate the exchange rate. The third part sheds light on the theoretical frameworks of money, aggregate demand-supply analysis based on the monetary policy curve, and channels through which the changes in policy interest rate transmit to the aggregate output and inflation in the economy. The nonconventional monetary policy during the global financial crisis of 2007-2009 when countries reached their zero-lower bound of interest rates is demonstrated too. For the special case of Czech monetary policy, a guest speaker from the Czech National Bank will be invited to give his presentation and answer any specific questions, which may interest students in practice.

Požadavky:

Midterm and non-cumulative final exams count for 30% each of a grade. A team project counts for another 30% and includes two ten-minute presentations, worth 15% each. The rest 10% comes from weekly participation in answering questions or solving problems in class. Attendance at classes is expected to pass successfully the course.

Osnova přednášek:

•Introduction: What are money and central banks?

Interest rate

•The meaning and behavior of interest rates

•The risk and term structure of interest rates

•The stock market, the theory of rational expectations, and the efficient market hypothesis

Conduct of monetary policy

•The money supply process

•Tools, instruments, targets, and goals of monetary policy

•The foreign exchange market, foreign exchange interventions, and exchange rate regimes

Monetary policy theory

•The quantity theory and the Keynesian theory of money, aggregate demand-aggregate supply analysis

•Inflation, responses of monetary policy to demand and supply shocks, and nonconventional monetary policy

•Transmission mechanisms of monetary policy

Osnova cvičení:

There are exercises and problem sets solved together in class on each topic of the lectures. Presentations of the team project take place during exercise sessions as well. More details about the content of presentations and their evaluation will be posted in Moodle.

Cíle studia:

The goal is to help students understand the links between monetary policy and aggregate economy and strengthen their capacity to examine macroeconomic issues from a central banker's point of view. The primary focus is to enable students to translate theoretical concepts into real-world applications. To bridge the gap between theory and practice, students engage in an analysis of a country and its monetary policy throughout the semester in teams. As various topics are covered in class, students will research how those topics apply to a selected country and collaborate on presentations that showcase findings to the class.

Studijní materiály:

Mishkin, F. S. (2022). The Economics of Money, Banking, and Financial Markets. Harlow, England: Pearson Education, 1-718.

Lecture slides, problem sets, details for the team project presentations, signing-up sheets, and points of students will be posted in Moodle.

Official websites of central banks: https://www.bis.org/cbanks.htm?m=59.

International Monetary Fund: https://www.imf.org/en/Home.

Bank for International Settlements: https://www.bis.org/

Various economic magazines and news periodicals such as Finance and Development Magazine, Global Finance Magazine, the Economist, VoxEU columns, etc.

Poznámka:

Rozvrh na zimní semestr 2024/2025:

	06:00–08:0008:00–10:0010:00–12:0012:00–14:0014:00–16:0016:00–18:0018:00–20:0020:00–22:0022:00–24:00
Po	místnost DEJ:408 Algozhina A. 09:00–10:30 (přednášková par. 1) Dejvice Učebnamístnost DEJ:408 Algozhina A. 10:45–12:15 (paralelka 101) Dejvice Učebna
Út
St
Čt
Pá

Rozvrh na letní semestr 2024/2025:

Rozvrh není připraven

Předmět je součástí následujících studijních plánů:

• Process Management, prezenční - 22/23 (povinně volitelný předmět)
• Financial management, AR 22/23, prezenční forma (povinný předmět zaměření)
• Regional Studies, prezenční forma, AR 22/23 (povinně volitelný předmět)
• Project management, prezenční forma, AR 2022/2023 (povinně volitelný předmět)