Monetary and Fiscal Policy

The course offers a detailed analysis of the functioning of the monetary sector of the economy and the role of monetary policy. In particular, the discusssion includes issues such as: functions of the monetary sector of the economy, aims and means of monetary policy, implementation of monetary policy, monetary policy making in European Union, the impact on the economy, approaches of different economic schools on monetary policy, implication on financial markets.

Objectives

not available

Prerequisites

not available

Syllabus

1. Money Supply 2. The demand for money 3. The money market and the formation of the equilibrium interest rate 4. The European Central Bank (ECB) and monetary policy in the euro zone 5. The monetary policy and its impact on economic activity according to the IS-LM model 6. The aggregate supply and aggregate demand in the economy and the analysis of the impact of economic policy on the economy 7. The economic policy and the problems of inflation and unemployment 8. The relationship between inflation and unemployment 9. The anti-inflationary policy 10. Economic policy and unemployment