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ECTS Course Overview



International Monetary Integration

* Exchange students do not have to consider this information when selecting suitable courses for an exchange stay.

Course Unit Code120-0569/03
Number of ECTS Credits Allocated5 ECTS credits
Type of Course Unit *Choice-compulsory
Level of Course Unit *Second Cycle
Year of Study *
Semester when the Course Unit is deliveredSummer Semester
Mode of DeliveryFace-to-face
Language of InstructionEnglish
Prerequisites and Co-Requisites Course succeeds to compulsory courses of previous semester
Name of Lecturer(s)Personal IDName
KUL20prof. Ing. Lumír Kulhánek, CSc.
DVO37Ing. Kateřina Dvoroková, Ph.D.
Summary
Students learn the theoretical framework for examining the optimality of currency areas. The core of the subject is the theory of monetary integration, the analysis of historical and contemporary monetary unions in the world. The subject also includes analysis of monetary integration in Europe, the institutional framework of the European System of Central Banks and the assessment of the position of the euro area in the world economy.
Learning Outcomes of the Course Unit
1. Define the principles of the theory of optimal currency area.
2. Clarify the functioning of historical and current monetary unions in the world.
3. Examine central bank decisions.
4. Analyze monetary integration in Europe.
3. Propose managerial decisions according to the current development of international economic policy.
4. Predict the future development of basic macroeconomic indicators.
Course Contents
1. Optimal currency area theory - definition of optimal currency area, classical theory of optimal currency area, new Mundell model of optimal currency area, development of theory of optimum currency area.
2. Cost Analysis of Monetary Union - Inflation vs. Unemployment, institutional differences in labor markets, differences in economic growth dynamics, differences in legal and financial systems, Balassa-Samuelson effect.
3. Common currency benefits - elimination of transaction costs, price transparency, elimination of exchange rate risk, growth of mutual trade and economic growth.
4. Costs and benefits of the common currency - comparison - endogenity of the monetary integration process, model GG-LL, marginalist approach to OCA and cost-benefit analysis, impact on wealth level
5. Asymmetric shocks in the monetary union - definitions and types of asymmetric shocks, alignment of business cycles, labor mobility, symmetric shocks with asymmetric impacts.
6. Historical Monetary Union - Germany-Austrian Monetary Union, Latin Monetary Union, Scandinavian Monetary Union, Belgian-Luxembourg Monetary Union, Czech-Slovak Monetary Union.
7. Current Monetary Union in the World - United Nations Union of South American Nations (UNASUR), East Caribbean Monetary Union, West African and Central African Monetary Union, Monetary Union of the CFP franc.
8. The most important de facto monetary union in the world - United States of America, Swiss franc, Russian ruble, Indian rupee.
9. The history of monetary integration in Europe - the Werner report - the snake in the tunnel, the European monetary system.
10. Implementation of a common European currency project - Delors report, Maastricht Treaty, convergence criteria, reasons for non-membership of Sweden, Denmark and the United Kingdom of Great Britain and Northern Ireland.
11. The European Central Bank (ECB) - the institutional framework of the European System of Central Banks (ESCB) and the ECB, the ECB's monetary policy strategy.
12. ECB Monetary Policy Instruments - the ECB's standard monetary policy instruments, the ECB's non-standard monetary and policy instruments.
13. Admission of new members to the European Monetary Union - the process of real and nominal convergence.
14. Position of the euro area in the world economy - economic comparison of the euro area with the US, comparison of the US dollar and the euro position in the international monetary system.
Recommended or Required Reading
Required Reading:
GRAUWE, Paul de. Economics of Monetary Union. 11th ed. Oxford: Oxford University Press, 2016. 280 p. ISBN 978-01-987-3987-6.
MISHKIN, Frederic S. The Economics of Money, Banking and Financial Markets. 11th ed. Essex: Pearson, 2015. 704 p. ISBN 978-0133836790.
RØSTE, Ole B. Monetary policy and macroeconomic stabilization: the roles of optimum currency areas, sacrifice ratios, and labor market adjustment. New Brunswick, N.J.: Transaction Publishers, 2008. 216 p. ISBN 978-1412807487.
GRAUWE, Paul de. Economics of Monetary Union. 11th ed. Oxford: Oxford University Press, 2016. 280 p. ISBN 978-01-987-3987-6.
MISHKIN, Frederic S. The Economics of Money, Banking and Financial Markets. 11th ed. Essex: Pearson, 2015. 704 p. ISBN 978-0133836790.
RØSTE, Ole B. Monetary policy and macroeconomic stabilization: the roles of optimum currency areas, sacrifice ratios, and labor market adjustment. New Brunswick, N.J.: Transaction Publishers, 2008. 216 p. ISBN 978-1412807487.
Recommended Reading:
ENOCH, Ch., W. BOSSU, C. CÁCERES a D. SINGH. Financial integration in Latin America: a new strategy for a new normal. Washington, DC: International Monetary Fund, 2017. 226 p. ISBN 978-1513520247.
KUFUOR, Kofi O. The institutional transformation of the economic community of West African states. London: Routledge, 2017. 190 p. ISBN 978-0754644880.
MÜLLER, Philipp. China as an Optimum Currency Area - Something to learn for the European Monetary Union?. Munich: GRIN Verlag, 2013. 60 p. ISBN 978-3656372950.
ENOCH, Ch., W. BOSSU, C. CÁCERES a D. SINGH. Financial integration in Latin America: a new strategy for a new normal. Washington, DC: International Monetary Fund, 2017. 226 p. ISBN 978-1513520247.
KUFUOR, Kofi O. The institutional transformation of the economic community of West African states. London: Routledge, 2017. 190 p. ISBN 978-0754644880.
MÜLLER, Philipp. China as an Optimum Currency Area - Something to learn for the European Monetary Union?. Munich: GRIN Verlag, 2013. 60 p. ISBN 978-3656372950.
Planned learning activities and teaching methods
Lectures, Tutorials
Assesment methods and criteria
Tasks are not Defined