Syllabus
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)
Annotation
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.