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Course, academic year 2023/2024
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Monetary Economics - JEM027
Title: Monetary Economics
Guaranteed by: Institute of Economic Studies (23-IES)
Faculty: Faculty of Social Sciences
Actual: from 2022
Semester: winter
E-Credits: 6
Examination process: winter s.:
Hours per week, examination: winter s.:2/2, Ex [HT]
Capacity: 50 / 50 (85)
Min. number of students: unlimited
4EU+: no
Virtual mobility / capacity: no
State of the course: taught
Language: English
Teaching methods: full-time
Teaching methods: full-time
Note: course can be enrolled in outside the study plan
enabled for web enrollment
priority enrollment if the course is part of the study plan
Guarantor: doc. Mgr. Tomáš Holub, Ph.D.
Teacher(s): doc. Mgr. Tomáš Holub, Ph.D.
Mgr. Vojtěch Molnár
Mgr. Josef Simpartl
Class: Courses for incoming students
Annotation -
Last update: doc. Mgr. Tomáš Holub, Ph.D. (26.09.2023)
The goal of this course is to achieve understanding of modern monetary economics. The introductory part is devoted to the role of money in the economy, the nature of modern monetary system (and its alternatives proposed in the literature), monetary policy instruments in normal times as well as at the ZLB, and to the monetary policy transmission mechanism. The following block of lectures is devoted to the optimal institutional and regime design of monetary policy, including nexus between monetary policy and financial stability.
Aim of the course -
Last update: doc. Mgr. Tomáš Holub, Ph.D. (26.09.2023)

This course provides basic orientation in advanced monetary economics. The seminars focus, inter alia, on possible modifications to the modern monetary framework. 

Literature -
Last update: doc. Mgr. Tomáš Holub, Ph.D. (26.09.2023)

Walsh, C. E.: Monetary Theory and Policy, Cambridge: MIT Press, 1998.

Adrian, T. Laxton, D. and M. Obstfeld: "Advancing the Frontiers of Monetary Policy," IMF, 2018.

detailed list of papers is provided in the course outline for each year



Teaching methods -
Last update: doc. Mgr. Tomáš Holub, Ph.D. (26.09.2023)

lectures + seminars(incl. team seminar presentation)

 fully on-site form in the 2023/2024 academic year

Requirements to the exam -
Last update: doc. Mgr. Tomáš Holub, Ph.D. (27.11.2023)

1) Homework: 7 HWs, together maximum 20 points

2) Team seminar presentation and essay: maximum 30 points

3) Final exam: maximum 50 points (tentative written exam dates: 8 January, 22 January 2024)

Standard IES grading applies: 

90.1 % and more  =>          A

80.1-90 %             =>          B

70.1-80 %             =>          C

60.1-70 %             =>          D

50.1-60 %             =>          E

0-50 %                =>          F

Syllabus -
Last update: doc. Mgr. Tomáš Holub, Ph.D. (01.12.2023)

2.10. The role of money (T. Holub) Money as the medium of exchange - random matching model (J. Simpartl)
9.10. The nature modern monetary system (T. Holub) Elastic money and its creation by banks (J. Simpartl; HW1)
16.10. MP instruments in normal times, IR rules (T. Holub) Taylor principle and the Great Moderation debate (V. Molnár; HW2)
23.10. MP transmission mechanisms, traditional vs. credit channel (T. Holub) MP transmission in a general equilibrium model (guest lecture by J. Vlček; HW3)
30.10. Unconventional monetary policy instruments (T. Holub) Exchange rate as an UMP instrument (T. Holub; HW4)
6.11. Dynamic inconsistency and CB independence (T. Holub) Measuring CB independence and transparency (V. Molnár; HW5)
13.11. Seigniorage and fiscal dominance (T. Holub) Seminar projects 1 (student presentations)
20.11. Inflation targeting in comparison to other strategies (T. Holub) Seminar projects 2 (student presentations)
27.11. Price level targeting , Fed's strategy review (AIT) (V. Molnár) Seminar projects 3 (student presentations)
4.12. ECB's reviewed strategy (T. Holub) Post-Covid inflation spike (T. Holub) 
11.12. MP under uncertainty (T. Holub) Practical ways of dealing with uncertainty (T. Holub; HW6)
18.12. MP, asset prices and financial stability (T. Holub) Understanding and modeling financial imperfections (J. Simpartl; HW7)

Entry requirements -
Last update: doc. Mgr. Tomáš Holub, Ph.D. (26.09.2023)

there are no special prerequisites

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