The course aims to examine various theoretical and empirical topics on monetary policy, with the focus on both global and domestic (European) aspects of monetary policy conduct. The course will provide an overview of the different dimensions of monetary policy and central banks’ related tasks, and it aims to enhance the understanding of the interdependencies between monetary policy, financial system and the macroeconomy. In this context, the course will offer general, theoretical as well as practical insights into aspects related to the strategy as well as the implementation of monetary policy. In addition, we will address the issues of the global financial integration and its implications for the monetary policy conduct; the causes and consequences of the most recent financial crisis; challenges faced by the monetary authorities, and the resulting policy choices.
The course consists of five chapters:
As a practical application of the tools and concepts studied in class, students (working in groups) will be asked to conduct a monetary policy case study for the selected country. The objective of this exercise is to enhance understanding of the major concerns of monetary policy and the factors that determine how monetary policy is conducted by central banks in different national settings, depending on the institutional, economic and financial environment. This task should enable students to analyse and compare differences in the conduct of monetary policy in different countries in a rigorous manner, improve research and analytical skills.
Written exam. Work in groups “Monetary Policy Case Study” – 20% of the grade.
See website of course for lecture notes (slides) and recommended readings.