MONETARY POLICY
The exam Monetary policy will be held on September 21, 2026 at 9 a.m. in Hall 20. Due to the small number of students registered, the exam will be oral only.
The exam Monetary policy will be held on February, 12 2025 at 04:00 pm in classroom 17.
The exam Monetary policy will be held on September, 19, 2024 at 8:00 am in office 106 (old building).
- Mishkin, F.S.: «The Economics of Money, Banking and Financial Markets», Pearson Addison Wesley/ Prentice Hall/ Pearson Education
- Lectures (Presentations and other sources) - Classroom
CONTENT:
UNDERSTANDING MONEY AND ITS HISTORICAL DEVELOPMENT
Functions, forms and characteristics of money. Historical development of currency systems. Deposit money - credit money.
THE ROLE OF BANKS IN THE PROCESS OF THE CREATION OF MONEY
Monetary institutions. Bank's balance sheet. Lending capacity of banks. Limits of credit expansion.
BANK RESERVES, MULTIPLICATION OF DEPOSITS AND CREDIT EXPANSION
Functions of liquidity reserves for commercial banks and monetary system. Required reserves. Micro-multiplication of deposits. Macro-multiplication of deposits. Deposit and credit multipliers.
MONEY SUPPLY
Monetary system balance sheet. Credit channel of money issue. Commercial banks’ foreign currency transactions. Changes in non-monetary liabilities. Monetary aggregates. Analysis of the structure of the monetary aggregates in the Republic of Croatia, the European Union and the United States of America.
THE OBJECTIVES AND INSTRUMENTS OF MONETARY POLICY
Dilemmas about key objectives of monetary policy. Price stability. Open market policy. Re-financing policy. Required reserves policy. Other instruments of monetary regulation.
MONETARY POLICY OF THE CROATIAN NATIONAL BANK, THE EUROPEAN CENTRAL BANK AND THE FEDERAL RESERVE SYSTEM
Instruments and measures of monetary regulation used by the CNB, ECB and FED. The European Monetary Union.
THE EFFECTS OF MONETARY POLICY ON FINANCIAL MARKETS AND ON SHIFTS IN THE REAL SECTOR OF THE ECONOMY
Changes of interest rates, exchange rate, yield on securities. The role of money in the economic activity. Transmission mechanism of monetary policy.
MONEY AND INFLATION
Demand-pull inflation. Cost-push inflation. Psychological components of inflation. Inflation - causes and consequences.
MONETARY AND EXCHANGE RATE POLICY
Economic and monetary aspects of exchange rate. Possibilities and constraints of the exchange rate policy.
INTERNATIONAL MONETARY SYSTEM
Historical development and problems. The International Monetary Fund. The IMF’s functions and objectives. The role of the IMF in the prevention of financial crises. The exchange rate systems in the International Monetary System.