MONETARNA EKONOMIJA

Upon completion of this course, the student will be able to: 1. Explain economic and legal aspect of money, define money and credit and list functions of money and credit, look into the phenomenon and development of money, define and analyse monetary systems, interpret money supply and demand, sketch equilibrium on money market. 2. Analyse money supply and liquiditiy of macroeconomy, explain monetary aggregates, define structure and sectoral distribution of money supply, review optimal and necessary amount of money and speed of money flow. 3. Recognise creation 4. of money supply and concept of monetary base, analyse effects of imbalance of money supply, illustrate credit multiplication, calculate coefficients in multiplication sequences, categorise and explain financial innovations. 5. Look into basic characteristics and functions of money, briefly describe theories of money value, research into details theories of relation of money and prices, assess monetary (in)stability and (im)balance, explain the link among interest rate, inflation and domestic product. 6. Analyse causes and consequences of inflation, define and compare inflation and deflation, look into theories of inflation, formulate zone approach to inflation and deflation, compare anti-inflationary concepts, speak about consequences of deflation, explain Phillip’s curve. 7. Explain monetary system, point out and compare operational goals and indicators, analyse strategic choice and transmission mechanism of monetary policy, explain delay of measures of monetary policy and instruments of monetary policy. 8. Define and analyse foreign exchange market, foreign exchange and exchange rate, illustrate forming of exchange rate, analyse theories of forming exchange rate, explain change of intercurrency value of money, summarise types of currency convertibility. 9. Establish and provide argument for importance of international monetary system, defend and/or criticise functioning of international monetary (financial) institutions, speak about processes of European monetary and economic cooperation and functioning of EMU.