Finance in the Global Economy II: Monetary and Exchange Rate Policy

The book is a unique comprehensive work on monetary and exchange rate policy in the Czech Republic and the world. The author's extensive practical experience from his work at the central bank and from internships at foreign financial institutions and universities abroad is summarised here. The author first explains the instruments of monetary policy, the operational, intermediate and ultimate objectives of monetary policy and the inflation targeting regime. This is followed by sections on the transmission mechanism and monetary policies in a number of major countries. The section on exchange rate policy describes the foreign exchange market, exchange rate regimes, foreign exchange intervention, balance of payments, the role of gold, dollarisation and currency crisis.