JEM027 - Monetary Economics

Credit: 6
Credit ETCS: 6
Hours weekly: 2/2
Status: EEI and EP - mandatory
English
ET - elective
F,FM and B - elective
Masters - all
MEF - elective
Semester - winter
Obligatory courses:
Recommended courses:
Course supervisors: doc. Mgr. Tomáš Holub Ph.D.
Teachers: doc. Mgr. Tomáš Holub Ph.D.
prof. Mgr. Kateřina Šmídková Ph.D, MA.
Assistants: PhDr. Ing. Jiří Skuhrovec
Mgr. Petra Valíčková
Schedule: Lecture: Monday, 17:00 -18:20, room 314 Seminar: Monday, 18:30 - 19:50, room 314
Announcements:
Literature: Walsh, C. E.: Monetary Theory and Policy, Cambridge, Massachusetts, MIT Press, 1998.
Mahadeva L., Sterne G. (2000) Monetary policy framework in a global context, Routledge, London.

for other readings see file PRESENTATION LIST
Description: The goal of this course is to achieve understanding of modern monetary economics. The first part is devoted to the role of money in the economy and to the demand for money. The second part deals with money supply, monetary policy implementation and the determination of short-term interest rates. The following lecture concentrates on the transmission mechanisms of monetary policy. The next part of the course deals with the optimal institutional and operational set-up of monetary policy. Finally, the issues related to financial imperfections and macro-financial linkages are discussed.
Content: 1) The role of money
2) The demand for money and its role in money targeting
3) Exogenous vs. endogenous money, monetary policy implementation
4) Central bank reaction function, monetary policy rules
5) Channels of monetary policy transmission
6) Seigniorage and the relationship between monetary and fiscal policies
7) Central bank‘s independence, transparency and accountability
8) Inflation targeting in comparison to other strategies
9) Czech inflation targeting
10) Monetary policy under uncertainty
11) Monetary policy, asset prices and financial stability
12) Modeling macro-financial linkages, implications for monetary policy

(see file "Course outline 2011" for details)
Seminar: Each student is required to give at least one presentation at the seminar.
See details, including reading, are in this shared document
Examination dates: 14 January 2013 from 17:00, room 314
Course requirements: written exam (+an oral one, if necessary)
seminar presentation (with bonus for active seminar participation)
Downloadable: CB Status - lecture (2012)
Course outline 2012
Czech Inflation Targeting - lecture 2012
Demand for Money - lecture 2012
Exam results (anonymous)
Financial frictions - lecture_2012
Inflation targeting - lecture 2012
Money supply and MP implementation I_2012
MP Implementation during Crisis_2012
MP, Asset prices and FS (2012)
Role of money - lecture 2012
Role of money - seminar 2012
Sample exam questions
Seigniorage - lecture 2012
Transmission - lecture 2012
Uncertainty - lecture (2012)