1. Theory of central banking, functions of central banks. Commercial banking, functions of commercial banks. Two-stage banking system.
2. Monetary policy – goals, tools, monetary base, balance sheet of a central bank and commercial banks. Open market operations, discount tools and its impact on money markets.
3. Money supply, simple multiplier, endogenous and exogenous money supply.
4. International financial markets, types of money markets in an open economy (call money markets, interbank markets, money market securities).
5. Exchange rate theory, exchange rate regimes, foreign exchange interventions.
6. Exchange rate theory. Theory of covered and uncovered interest rate parity.
7. Exchange rate and GDP in the short run, DD-AA model.
8. Test.
9. The law of one price, the Balassa-Samuelson model.
10. Exchange Rate Mechanism ERM II, history, rules, practice, application to “new EU member countries”.
11. World financial crisis, originate-to-distribute model, financial regulation and supervision in the EU and the USA.
12. Optimum currency area theory, traditional and modern version.
13. Presentations of projects
14. Test.
2. Monetary policy – goals, tools, monetary base, balance sheet of a central bank and commercial banks. Open market operations, discount tools and its impact on money markets.
3. Money supply, simple multiplier, endogenous and exogenous money supply.
4. International financial markets, types of money markets in an open economy (call money markets, interbank markets, money market securities).
5. Exchange rate theory, exchange rate regimes, foreign exchange interventions.
6. Exchange rate theory. Theory of covered and uncovered interest rate parity.
7. Exchange rate and GDP in the short run, DD-AA model.
8. Test.
9. The law of one price, the Balassa-Samuelson model.
10. Exchange Rate Mechanism ERM II, history, rules, practice, application to “new EU member countries”.
11. World financial crisis, originate-to-distribute model, financial regulation and supervision in the EU and the USA.
12. Optimum currency area theory, traditional and modern version.
13. Presentations of projects
14. Test.