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 Baqyt

Přednášející:

Aliya Baqyt

Cvičící:

Aliya Baqyt

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 a definition of money, its functions, and its measures in a 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 a 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 a monetary policy curve, and channels through which the changes in policy interest rate transmit to the aggregate output and inflation. 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 case of Czech monetary policy, a guest speaker from the Czech National Bank will be invited to give his/her presentation and answer any specific questions, which may interest students.

Požadavky:

Midterm and non-cumulative final exams count for 30% each of a grade. Presentations count for another 30% and include one individual, five-minute, presentation of a current financial news (10%) and one team, ten-minute, presentation of a selected research publication with monetary policy implications (20%). The rest 10% comes from weekly participation in answering questions and solving problems in class. Attendance at classes is expected to pass successfully the course.

Osnova přednášek:

- Introduction: What is money and central banks?

Interest rate

- Meaning and behavior of interest rates

- Risk and term structures of interest rates

- Stock market, the theory of rational expectations, and efficient market hypothesis

Conduct of monetary policy

- 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 take place during the exercise sessions. 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 the aggregate economy and strengthen their capacity to examine macroeconomic issues from a central bankers 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 work with real country data during their exercise sessions and analyze current financial news, IMF blogs, BIS press releases, central banks policy briefs, and research publications that illustrate the implications of monetary policy.

Studijní materiály:

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

Course syllabus, lecture slides, exercise setups, links to relevant webpages and podcasts, a signing-up sheet for presentations, and points of students will be posted in Moodle.

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

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

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

National Bureau of Economic Research, The Monetary Economics Program: https://www.nber.org/programs-projects/programs-working-groups/monetary-economics?page=1&perPage=50

Centre for Economic Policy Research, Monetary Policy or Central Banking Themes: https://cepr.org/themes/monetary-policy, https://cepr.org/themes/central-banking

Peterson Institute for International Economics: https://www.piie.com/research/topics-regions

Bruegel: https://www.bruegel.org/topics

Brookings Hutchins Center on Fiscal and Monetary Policy: https://www.brookings.edu/centers/the-hutchins-center-on-fiscal-and-monetary-policy/

LSE Centre for Macroeconomics: https://www.lse.ac.uk/CFM

Various magazines and news periodicals such as VoxEU columns, IMF Finance and Development Magazine, Project Syndicate, Economics Observatory, etc.

Poznámka:

„Monetary policy will, as always, respond to the economy's twists and turns so as to promote, as best as we can in an uncertain economic environment, the employment and inflation goals.“ - Janet Yellen.

„The effects of monetary policy actions on the economy today depend importantly not only on current policy actions, but also on the public's expectations of how policy will evolve.“ Ben Bernanke.

Rozvrh na zimní semestr 2025/2026:

	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:403 Algozhina A. 09:00–10:30 (přednášková par. 1) Dejvice Učebnamístnost DEJ:403 Algozhina A. 10:45–12:15 (paralelka 101) Dejvice Učebna
Út
St
Čt
Pá

Rozvrh na letní semestr 2025/2026:

Rozvrh není připraven

Předmět je součástí následujících studijních plánů:

• prezenční - Project and Process Innovation Management, N0413A050002 Projektové řízení inovací (povinně volitelný předmět)
• prezenční - Management inovací v regionech, N0413A050002 Projektové řízení inovací (povinně volitelný předmět)
• prezenční - Management moderních výrobních technologií, N0413A050002 Projektové řízení inovací (povinně volitelný předmět)
• prezenční - European Union And Regional Policy, N0413A050002 Projektové řízení inovací (povinně volitelný předmět)
• prezenční - Spolupráce soukromého a veřejného sektoru, N0413A050002 Projektové řízení inovací (povinně volitelný předmět)
• prezenční - Sustainability and Climate Change, N0413A050002 Projektové řízení inovací (povinně volitelný předmět)