N_MTP Monetary Theory and Policy

University of Finance and Administration
Summer 2025
Extent and Intensity
2/2/0. 6 credit(s). Type of Completion: zk (examination).
Guaranteed by
prof. Dr. Ing. Jan Frait
Department of Finance – Departments – University of Finance and Administration
Contact Person: Dita Egertová
Prerequisites
There are no prerequisites for this course.
Course Enrolment Limitations
The course is offered to students of any study field.
Course objectives
The aim of the course is to explain to students function of monetary policy, its objectives and the basic types of strategies for its implementation. Both theoretical and policy assumptions and principles of monetary policy will be explained through developments of the two basic directions of theoretical macroeconomic theory, Keynesian and monetarist. The implications of monetary policy in a contemporary system of economic policies and characterize the objectives pursued by the central bank and other involved international institutions will be explored. Conception and breadth of these goals varies   various stages and between countries, in   modern conditions is a key aim has always stability of the price level.   To achieve this goal, the central bank chooses monetary policy strategy (monetary policy regime), which is based on a specific nominal macroeconomic variable, anchoring price developments, ie the nominal anchor. Just type chosen by the anchor distinguish basic monetary policy regimes, which are subject to more detailed interpretation and deeper study.   It is a targeting money supply, inflation targeting, exchange rate targeting and modes   only implicit anchor (formally unspecified). The final part of the course is focused on the discussion of inflation targeting, the CNB's monetary policy strategy, and evaluate its implementation in   the Czech economy. Course objectives apply to the combined study
Learning outcomes
At the end of the course the student will be able to understand principles and theoretical underpinnings of monetary policy making; distinguish the differences between two historical streams of monetary theories - keynesian and neoclassic; understand the role of monetary policy in current system of economy policy making; assess the implications of objectives of central banks and the imppacts of changes in monetary policies for business and financial cycles.
Syllabus
  • 1) Characteristics of monetary policy and its theoretical basis. 2) The position of monetary policy in the   system of economic policies. Discussion   what and what term monetary policy can affect and what is not. 3) The objectives of monetary policy, why price stability. Price stability should be the sole objective of monetary policy, or in combination with     other economic policy objectives. Examples of solutions in   conditions of contemporary economies. 4) Options Strategies (monetary policy regimes) the central banks to achieve specific goals in   the field of monetary policy. Characteristics of their relative strengths and limitations. 5) Specification of the implementation of such strategies on the example of the Czech economy, development stage CNB's monetary policy, their causes and evaluating the experience. 6) The inflation targeting and its implementation in the Czech economy  , prerequisites for the application, the types of goals, roles forecasts, inflation expectations, monetary policy transparency and communication with the public   7) The transmission mechanism: clarification process, monetary policy decisions central bank (  controlled changes in interest rates, respectively.   In the monetary base) in the decision-making of economic agents and the macroeconomic functioning economy. 8) Comparison of monetarist and Keynesian understanding of the transmission mechanism, transmission channels, expectation of economic agents, credibility of the central bank, the consequences of time delays and exogenous factors and shocks. 9) The instrumental apparatus of modern central banks, the resolution of the instruments of direct control and indirect management tools, their advantages and limitations. 10) Developmental stages in the use of the tool system, an example of the Czech economy. Indirect management tools, their types and trends in   their use. 11) The nature and function of minimum reserve requirements, their role in the short and long   term. 12) Open market operations, the essence, the primary and secondary market, supplying and download liquidity advantages of open market operations of the   terms of monetary policy
Literature
    recommended literature
  • FRAIT Jan, Post-Crisis Banking Regulation and its Potential Impacts in Small Open Economies. 1. vyd. Praha: Vysoká škola finanční a správní, a. s., 2016. 152 s. Edition EUPRESS. ISBN 978-80-7408-144-6.
  • Landorová, A.: Centrální bankovnictví. Liberec, Technická univerzita Liberec, 2007
  • Hrnčíř M.: Měnová teorie a politika, VŠFS-Eupress 2010
  • Pavlát, V.: Centrální bankovnictví. Praha, Vysoká škola finanční a správní, o.p.s.,
  • Revenda, Z. a kol.: Peněžní ekonomie a bankovnictví. 4. vydání, Praha, Management Press,
  • Mandel, M. – Tomšík, V.: Monetární ekonomie v malé otevřené ekonomice. Praha, Management Press, 2008
  • REJNUŠ Oldřich, Finanční trhy, 4. vydání., GRADA Publishing Praha, 2014, ISBN 978-80-247-3671-6
    not specified
  • JÍLEK, Josef, Peníze a měnová politika. 1. vyd. Praha: Grada, 2004, 742 s. ISBN 80-247-0769-1.
  • REVENDA, Zbyněk; MANDEL, Martin; KODERA, Jan; MUSÍLEK, Petr a DVOŘÁK, Petr. Peněžní ekonomie a bankovnictví. Sedmé přepracované vydání. Jesenice: Ekopress, 2023. ISBN 978-80-87865-84-2.
  • Titul:* A Global History of the Financial Crash of 2007–10 *Autoři:* Lybeck, Johan A. *Informace o publikaci:* Cambridge [England] : Cambridge University Press. 2011, k dispozici ve školní knihovně
Teaching methods
Teaching takes the form / lectures / seminars / workshops / full-time study / group consultations and managed in the form of study. A condition for obtaining credit is activity during lectures and exercise and also processing and presentation slid presentation on the subject.
Assessment methods
Termination method: The exam, obligatory is necessary to obtain the credit.To obtain the credit it is necessary to elaborate a seminar paper of higher order according to the instruction of the tutor. The work is to be handed over to the delivery area within the deadline set by the tutor. Attendance at a minimum of 75% is also important.
Language of instruction
Czech
Further comments (probably available only in Czech)
The course can also be completed outside the examination period.
Information on the extent and intensity of the course: 16 hodin KS/semestr.
The course is also listed under the following terms Winter 2008, Summer 2009, Winter 2009, Winter 2010, Summer 2013, Summer 2014, Summer 2015, Summer 2016, Summer 2017, Summer 2018, Summer 2019, Winter 2019, Winter 2020, Winter 2021, Summer 2023, Summer 2024.
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