Monetary Theory and Policy

The Department of Monetary Theory and Policy (katedra měnové 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.

  1. 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) to interpret fundamental issues. It includes topics such as the money supply, interest rates, securities, central bank and commercial banks, exchange rates, the balance of payments, etc., all with a practical focus on the Czech Republic and the European Union. In addition, the department offers faculty-required courses in all study programs of the faculty. The main objective of the course “Monetary theory and policy” is to explain 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, especially the transmission mechanisms of monetary policy and regulation and supervision of banks. In addition, students acquire 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 “Central banking” subject, which combines the two previous articles. Optional subjects are “Regulation and supervision of financial market”, “International monetary institutions”, and others. “International Financial Management” is taught in the English language.
  2. The master’s degree studies – required courses “International monetary economics”, “Monetary macro analysis” and “Financial stability” have priority. For example, the first of them aimed at the more complex issues of theory and monetary policy of the central bank in a small open economy. The teaching of the course is based on the use of actual 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”. Students are interested in this specialization due to good employment opportunities in practice.
  3. The doctoral studies – department teaches the 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 demand, and problems associated with the interest rate, inflation and the balance of the money market. Other topics of the course are 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, mainly in books. Moreover, students often use these publications as a resource for other courses at the Prague University of Economics and Business.

Courses available in English


Main research topics:

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