FIUNAMMP Money Theory and Monetary Policy

School of Business Administration in Karvina
Summer 2022
Extent and Intensity
2/1/0. 5 credit(s). Type of Completion: zk (examination).
Ing. Zuzana Szkorupová, Ph.D. (lecturer)
Guaranteed by
Ing. Zuzana Szkorupová, Ph.D.
Department of Finance and Accounting – School of Business Administration in Karvina
Course Enrolment Limitations
The course is offered to students of any study field.
  • 1. Money
    Theoretical and empirical definitions of money. History of money. Metalism, nominalism and quantitative theory of money. Role of money in economy, function of money. Money base, monetary aggregates. Money market and effect of money on economy.
    2. Demand for money and supply of money
    The demand for money: Theoretical and empirical approaches. Fisher´s approach – transaction approach – Quantity theory. Cambridge approach – cash balance approach – quality theory. Keynesian approach, Post – Keynesian Approach. Friedman’s theory of demand for money. Money supply. Deposit multiplier, money multiplier.
    3. Monetary policy
    Monetary policy: definition, main goals and instruments of monetary policy. Monetary transmission mechanisms. Expansive and restrictive monetary policy. Central bank and its independence. Inflation targeting.
    4. Monetary policy and models
    Monetary policy and theoretical models – IS – LM model and IS – LM – BP model. Characteristics and assumptions of the models. The effectiveness of monetary policy in the models.
    5. Monetary policy of the Czech National Bank
    Historical development of monetary policy in the Czech Republic. Main aim and instruments of monetary policy in the Czech Republic. Current situation in the monetary policy of the Czech Republic.
    6. Theory of Optimum currency areas
    Optimum currency area criteria. Asymmetric economic shocks and symmetric economic shocks with asymmetric effects in monetary union. The costs and benefits of monetary union
    7. The process of European Monetary Integration and monetary policy of European Central Bank
    The History of the European Monetary Union. The Maastricht Convergence Criteria. Fulfilment of the Maastricht Convergence Criteria. The position and role of the European Central Bank. ECB's monetary policy: objective, strategy, instruments. Current situation in the monetary policy of European Central Bank.
    required literature
  • STRACCA, L., 2018, The Economics of Central Banking. London: Routledge. ISBN 1138496715.
  • WALSH, , CE., 2010. Monetary theory and monetary policy. 3th ed. Cambridge: The MIT Press. ISBN 9780262013772.
  • ROSTAGNO, M. ALTAVILLA, C., CARBONI, G., LEMKE, W., MOTTO, R., GUILHEM, A. and J. YIANGOU, 2021. Monetary Policy in Times ov Crisis: A Tale fo Two Decades of the European Central Bank. Oxford: Oxford University Press. ISBN ‎ 0192895915.
    recommended literature
  • MISHKIN, F., 2019. The Economics of Money, Banking, and Financial Markets, Global Edition. London: Pearson Education Limited. ISBN 9781292268859.
Assessment methods (in Czech)
Two ongoing tests (2x20p) 40 % evaluation, final exam (60p) 60 % evaluation.
Language of instruction

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