Monetary Theory and Policy

The Department of Monetary Theory and Policy (Katedra menove teorie a politiky, KMTP) is focused on the content of monetary theory and central banking. Simultaneously provides teaching practical and institutional aspects in the form of specialized courses. KMTP provides instruction on all three levels of study at the University.

The Bachelor’s degree studies – KMTP runs jointly with the Department of Finance of public-university education a compulsory subject “Financial theory, policy and institutions.” The course is aimed (part KMTP) on the interpretation of basic issues and includes topics such as the money supply in the economy, interest rates, securities, central bank and commercial banks, exchange rates, balance of payments, etc., all with a practical focus on the Czech Republic and the European Union. Department offers faculty-required courses in all study programs of the faculty. The main objective of the course “Monetary theory and policy” is the explanation of the meaning of money and the central bank in a market economy. Students will gain a comprehensive understanding of central bank activity from a practical and theoretical approach. This is especially the transmission mechanisms of monetary policy and regulation and supervision of banks. Students are also introduced to the main theoretical approaches to the functioning of money in the economy. The course “International finance” includes topics related to the issue of the exchange rate, balance of payments, foreign exchange market and foreign exchange operations, reserves position and risk. Teaching for related faculty study programs is the subject of the “Central banking”, which combines the two previous articles. Optional subjects are “Regulation and supervision of financial market”, “International monetary institutions” and some others. “International Financial Management” is taught in the English language.

The master’s degree studies – required courses “International monetary economics”, “Monetary macro analysis” and “Financial stability” have priority. For example, the first of them is aimed at the more complex issues of theory and monetary policy of the central bank in a small open economy. The course is based on empirical data. In addition, the department offers courses such as “Theory and practice of asset management”.

Department of monetary theory and policy, together with the Department of Banking and Insurance provides a secondary specialization “Monetary Economics and Banking”. About this specialization is (due to good employment opportunities in practice) great interest from the students at the University.

The doctoral studies – department teaches faculty-required course “Monetary economics – empirical models”. The course focuses on the relationship between monetary and fiscal policy, monetary policy autonomy in small economy models of the exchange rate, money supply and money demand, and problems associated with the interest rate, inflation and the balance of the money market. The course is also the issue of the convergence process in terms of inflation and real income in the domestic and foreign currency.

All required and other courses are most secure by literature, mostly in the form of books. These publications are often used by students as a resource for other courses at the Prague University of Economics.

Courses available in English


Science and Research – Main research topics

  • central banking
  • monetary theory and policy
  • banking regulation and supervision
  • international finance
  • empirical models in finance