PEMT Monetary theory

Faculty of Economics and Administration
Autumn 2008
Extent and Intensity
1/1/0. 3 credit(s). Type of Completion: graded credit.
Teacher(s)
Ing. Miroslav Hloušek, Ph.D. (lecturer)
Guaranteed by
prof. Ing. Antonín Slaný, CSc.
Faculty of Economics and Administration
Contact Person: Lydie Pravdová
Timetable
Mon 7:40–9:15 S309
Course Enrolment Limitations
The course is only offered to the students of the study fields the course is directly associated with.
fields of study / plans the course is directly associated with
Course objectives
Aim of the course is to provide overview of basic issues of modern monetary theory and policy.
At the end of this course, students should be able to:
- define main issues of monetary economics and policy;
- characterize problem of time inconsistency of monetary policy and its impacts;
- suggest possible solutions of time inconsistency problem;
- understand to derivation of New Keynesian Phillips curve and IS curve from microeconomic foundations;
- analyze various regimes of monetary policy (their advantages and disadvantages);
- derive optimal monetary policy under discretion and under commitment in basic New Keynesian model;
- distinguish additive and multiplicative uncertainty and its influence for central bank behavior;
- understand of solving rational expectations models;
- distinguish impacts of various types of shocks in the model economy.
Syllabus
  • 1. Introduction into monetary economics.
  • 2. Derivation of base New Keynesian model.
  • - IS curve
  • - Phillips curve
  • 3. Discretionary policy and time inconsistency problem.
  • 4. Interest rate rules.
  • 5. Targeting regimes and optimal monetary policy.
  • 6. Optimal policy and uncertainty.
  • 7. Solving of models with rational expectations (applications).
Literature
  • GALÍ, Jordi. Monetary policy, inflation, and the business cycle : an introduction to the new Keynesian framework. Princeton: Princeton University Press, 2008, xi, 203. ISBN 9780691133164. info
  • WALSH, Carl E. Monetary theory and policy. 2nd ed. Cambridge, Mass.: MIT Press, 2003, xviii, 612. ISBN 0262232316. info
  • WILLIAMSON, Stephen D. Macroeconomics. 2nd ed. Boston: Pearson Addison Wesley, 2005, xxiv, 678. ISBN 0321240936. info
Assessment methods
written examination
Language of instruction
Czech
Further Comments
Study Materials
The course is taught annually.
  • Enrolment Statistics (recent)
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