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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 2011 to 2011
Semester:	winter
E-Credits:	6
Examination process:	winter s.:
Hours per week, examination:	winter s.:2/2, Ex [HT]
Capacity:	unlimited / unlimited (45)
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
Additional information:	http://ies.fsv.cuni.cz/index.php?module=kernel&action=user&id_user=28&lng=en_GB http://ies.fsv.cuni.cz/index.php?module=kernel&action=user&id_user=56&lng=en_GB
Note:	course can be enrolled in outside the study plan enabled for web enrollment

Guarantor:	doc. Mgr. Tomáš Holub, Ph.D. prof. Mgr. Kateřina Šmídková, M.A., Ph.D.
Teacher(s):	doc. Mgr. Tomáš Holub, Ph.D. prof. Mgr. Kateřina Šmídková, M.A., Ph.D.
Class:	Courses for incoming students
In complex incompatibility with:	JEM019, JEM019, JEM028, JEM028, JEM111

Examination dates Schedule Noticeboard

Annotation -

Last update: Mgr. Michaela Čuprová (02.02.2020)

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 (with a focus on the credit channel). 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 is discussed.

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. (23.09.2013)

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

Kiyotaki, N., Wright, R. (1992): "Acceptability, Means of Payments and Media of Exchange", Fed. Reserve Bank ofMinneapolis, Quarterly Review, Summer, pp. 18-21.

Roffia, B. and Zaghini, A. (2007): "Excess Money Growth and Inflation Dynamics", ECB, Working Paper Series, No 749 (http://www.ecb.int/pub/pdf/scpwps/ecbwp749.pdf).

Woodford, M. (2007): "How Important is Money in the Conduct of Monetary Policy?", CEPR Discussion Papers, No. 6211.

Beyer, A. (2009): "A stable model for euro area money demand: Revisiting the role of wealth." ECB, Working Paper Series, no. 1111, November (http://www.ecb.int/pub/pdf/scpwps/ecbwp1111.pdf).

De Bondt, G.J. (2009): "Euro area money demand: Empirical evidence on the role of equity and labour markets." ECB Working paper No.1086, September (http://www.ecb.int/pub/pdf/scpwps/ecbwp1086.pdf).

Horváth, R., Komárek, L., and Rozsypal, F. (2010): Does Money Help Predict Inflation? An Empirical Assessment for Central Europe, CNB, Working Paper, no. 5/2010 (http://www.cnb.cz/en/research/research_publications/cnb_wp/2010/cnbwp_2010_05.html).

Rousseaus, S. (textbook): "Post-Keynesian Monetary Economics",London, M.E.Sharpe (chapters 4-5 (6))

Taylor, J. B. (1996): "Discretion versus Policy Rules in Practice," Carnegie-Rochester Conference on Public Policy 39, pp. 195-214.

Clarida, R., Galí, J. Getler, M. (1998): "Monetary Policy Rules and Macroeconomic Stability: Evidence and Some Theory," NBER, Working Paper 6442 (http://www.nber.org/papers/w6442).

Romer D. (2000): "Keynesian Macroeconomics Without the LM Curve", WP No 7461, NBER (http://papers.nber.org/papers/w7461).

Disyatat, P. (2008): "Monetary policy implementation: Misconceptions and their consequences." BIS Working Papers, no. 269, December 2008 (http://www.bis.org/publ/work269.htm).

Podpiera, J. (2008): "Policy rate decisions and unbiased parameter estimation in conventionally estimated monetary policy rules." CNB Working Paper, no. 2/2008 (http://www.cnb.cz/cs/vyzkum/vyzkum_publikace/cnb_wp/2008/cnbwp_2008_02.html).

ECB (2011): "The implementation of monetary policy in the euro area: General Documentation on Eurosystem monetary policy instruments and procedures." February 2011 (http://www.ecb.europa.eu/pub/pdf/other/gendoc2011en.pdf).

Lenza, M., Pill, H. and Reichlin, L. (2010): Orthodox and heterodox monetary policies, Economic Policy, April 2010, pages 295-339.

Baumeister, C., and Benati, L. (2010): Unconventional monetary policy and the great recession - Estimating the impact of a compression in the yield spread at the zero lower bound. Working Paper Series 1258, European Central Bank.

Gambacorta, L., Hofmann, B., and Peersman, G. (2012): The Effectiveness of Unconventional Monetary Policy at the Zero Lower Bound: A Cross-Country Analysis, BIS Working Paper 384.

Hamilton, J.D., and Jing Cynthia Wu (2012): The Effectiveness of Alternative Monetary Policy Tools in a Zero Lower Bound Environment. Journal of Money, Credit and Banking, Blackwell Publishing, vol. 44, pages 3-46, 02.

Smidkova, K.: "The transmission mechanism of monetary policy at the beginning of the third millennium" (http://econpapers.hhs.se/paper/wpawuwpma/0403012.htm).

Mishkin, F. S. (1995): "Symposium on the Monetary Transmission Mechanism" (in Symposia: The Monetary Transmission Mechanism), The Journal of Economic Perspectives, Vol. 9, No. 4., pp. 3-10.

Coricelli, F. Egert, B. and R. MacDonald (2006): Monetary Transmission Mechanism in Central & Eastern Europe: Gliding on a Wind of Change, William Davidson Institute Working Paper, No. 850, University of Michigan. (http://ideas.repec.org/p/wdi/papers/2006-850.html)

Rusnák, M., Havránek, T., Horváth, R. (2011): "How to Solve the Price Puzzle? A Meta-Analysis", CNB Working Paper, 2/2011 (http://www.cnb.cz/cs/vyzkum/vyzkum_publikace/cnb_wp/2011/cnbwp_2011_02.html).

Mahadeva L., Sterne G. (2000): "Monetary policy framework in a global context," Routledge, London, Section 4. http://www.bankofengland.co.uk/education/Documents/ccbs/publications/pdf/mpfagc/section4.pdf

Bullard (2010): "The Fed at a Crossroads", http://research.stlouisfed.org/econ/bullard/BullardWinterInstituteFinal.pdf.

Alesina, A., Summers, L. (1993): "Central BankIndependenceand Macroeconomic Performance: Some Comparative Evidence", Journal of Money, Credit and Banking, vol. 25, pp. 151-162.

Walsh, C. (1995): "IsNew Zealand’s Reserve Bank Act of 1989 an Optimal Central Bank Contract?" Journal of Money, Credit and Banking, vol. 27, no. 4 (Nov., part 1), pp. 1179-1191.

GeraatsP. M. (2009) Trends in Monetary Policy Transparency, CESifo Working Paper Series 2584, CESifo Group Munich.

Gros, D. (2004): "Profiting from the Euro? Seigniorage Gains from Euro Area Accession", Journal ofCommon Market Studies, Vol. 42, No. 4, pp. 795-813, November 2004.

Cincibuch, M., Holub, T., Hurník, J. (2008): "Central Bank Losses and Economic Convergence",Finance a úvěr - Czech Journal of Economics and Finance, 2008, vol. 59, no.3, pp. 190-215 (http://journal.fsv.cuni.cz/mag/article/show/id/1158).

Benecká, S., Holub, T., Kadlčáková, N.L., and Kubicová, I.(2012): Does Central Bank Financial Strength Matter for Inflation? An Empirical Analysis. CNB Working paper, no. 3/2012 (http://www.cnb.cz/en/research/research_publications/cnb_wp/2012/cnbwp_2012_03.html).

Bernanke B. S., Laubach T., Mishkin F. S., Posen, A. S. (1999): "Inflation Targeting: Lessons from the International Experience," Princeton University Press.

Svensson, L.E. O. (1999): "Inflation Targeting as a Monetary Policy Rule," Journal of Monetary Economics, 43, pages 607-654.

Batini, N., Kuttner, K. and Laxton, D. (2005): "Does Inflation Targeting Work in Emerging Markets?" In IMF, World Economic Outlook, September 2005: Chapter 4.

Mishkin, F. S., Schmidt-Hebbel, K. (2006): "Does Inflation Targeting Make a Difference?" CNB Working Paper, no. 13/2006 (http://www.cnb.cz/www.cnb.cz/en/research/research_publications/cnb_wp/2006/cnbwp_2006_13.html)

Irineu E. de Carvalho Filho (2011): "28 Months Later: How Inflation Targeters Outperformed Their Peers in the Great Recession," The B.E. Journal of Macroeconomics: Vol. 11: Iss. 1 (Topics) (http://www.bepress.com/bejm/vol11/iss1/art22).

Evaluation of the Fulfilment of the CNB's Inflation Targets 1998-2007, Prague, ČNB, 2008 (http://www.cnb.cz/en/research/research_publications/evaluation_infl_targets/index.html).

Holub, T., Hurník, J. (2007): "Ten Years of Czech Inflation Targeting: Missed Targets and Anchored Expectations," Emerging Markets Finance and Trade, 2008, vol. 44, no. 6 (November/ December), pp. 67-86.

Blinder A. (1998): Central Banking in Theory and Practice, MIT Press.

Brainard (1967) Uncertainty and the effectiveness of policy. AER 57/2.

Srour G. (1999) "Inflation Targeting Under Uncertainty, Bank of Canada," Technical Report No. 85 (http://www.bankofcanada.ca).

Lombardelli, Proudman, Talbot (2002) Committees versus individuals: an experimental analysis of monetary policy decision-making, Bank of England WP No 165.

K. Smidkova Monetary and macroprudential policies: should we have two in one? Presentation given at the Bank of England, 2011. http://www.bankofengland.co.uk/publications/Pages/events/ccbs_cew2011/programme.aspx

White, W. (2006): "Is price stability enough?" BIS Working Papers, no. 205, April 2006 (http://www.bis.org/publ/work205.htm).

Cecchetti, S.G. (2005): "The Brave New World of Central Banking: The Policy Challenges Posed by Asset Price Booms and Busts." CNB Working Paper, no. 14/2005 (http://www.cnb.cz/cs/vyzkum/vyzkum_publikace/cnb_wp/2005/cnbwp_2005_14.html).

Detken, C., Smets, F. (2004): "Asset Price Booms and Monetary Policy." ECB Working Paper Series, no. 364, May 2004 (http://www.ecb.int/pub/pdf/scpwps/ecbwp364.pdf).

Adalid, R., Detken, C. (2007): "Liquidity Shocks and Asset Price Boom/Bust Cycles." ECB Working Paper Series, no. 732, February 2007 (http://www.ecb.int/pub/pdf/scpwps/ecbwp732.pdf).

Bernanke, B. S., Getler, M., Gilchrist, S. (1999): The Financial Accelerator in a Quantitative Business Cycle Framework. In Handbook of Macroeconomics, J. B.Taylorand M. Woodford, Eds., vol. 1, pp. 1341-1393.

Christiano, L. J., Trabandt, M., Walentin, K. (2007): Introducing Financial Frictions and Unemployment into a Small Open Economy Model. Sveriges Riksbank, Working Paper Series 214.

Iacoviello, M., Neri, S. (2010): Housing Market Spillovers: Evidence from an Estimated DSGE Model. American Economic Journal: Macroeconomics 2 (2010), p. 125-164.

Kiyotaki, N. and Moore, J. (1997): Credit Cycles. The Journal of Political Economy 105, 211-248.

Brázdik, F., Hlaváček, M. and Maršál, A. (2011): Survey of Research on Financial Sector Modeling within DSGE Models: What Central Banks Learn from It,.CNB Research and Policy Notes, no. 3/2011 (http://www.cnb.cz/en/research/research_publications/irpn/2011/rpn_03_2011.html).