Uniwersystet Jagielloński

Course by Dr Marek Porzycki

The course was taught in the winter semester and will be offered again from October 2020.



e-mail: marek.porzycki [at] uj.edu.pl


Course outline



0. Organizational matters

1. The concept of money, its functions and theories

2. Context: the role of money in wider economy. Basic introduction into financial markets 

3. Money creation mechanism. Inflation.

to presentation 3: money multiplier

4. Monetary policy. Tools and policies.

5. Central bank functions. Seigniorage.

5a. Monetary policy tools – repetition.

6. Central banking in Poland, the EU and the US.

7. Central bank independence and the prohibition of monetary financing – the EU approach

8. Currency regimes.

9. Currency union in Europe – background.

10. Legal background of the euro. Derogation and euro adoption.

11. The 2010s crisis in the euro area – an overview.

12. Response to the euro area crisis.

13. Money in the law of obligations. Foreign exchange under Polish law.

14. Blockchain and cryptocurrencies.

15. Selected current issues related to central banking and currency exchange market.



Useful links:


European Central Bank:

- the euro

- monetary policy

- legal framework

- Convergence Reports

- educational materials


Law on the National Bank of Poland:

- original version in Polish

- unofficial English translation


Links to websites of all central banks and monetary authorities of the world


Background reading

In this section links to some current and less current texts related to the course will be posted. Reading them is recommended but not required for the exam.


- on cashless economy:

K. Rogoff, Costs and Benefits to Phasing Out Paper Currency, NBER Working Paper No. 20126, May 2014

Millions ‚will suffer without cash, BBC News, 19 December 2018 (on Britain’s transformation to a cashless society)

Europe’s disappearing cash. Emptying the tills, The Economist, 13 August 2016 (limited access)


 Archive from previous years:

- on monetary policy in low inflation:

Monetary policy in a prolonged period of low inflation”, speech by Mario Draghi, President of the ECB, at the ECB Forum on Central Banking, Sintra, 26 May 2014

The Eurozone’s Minsky Conundrum, by Daniel Gros, Project Syndicate, 12 November 2015


- on inflation targetting

The Economist explains: Why the Fed targets 2% inflation, 13 September 2015 (limited access)


- on the „impossible trinity”:

The Mundell-Fleming trilemma. Two out of three ain’t bad, The Economist, 26 August 2016 (limited access) 


- on central bank independence:

Unaccountable technocrats or convenient scapegoats? Rethinking central bank independence, Buttonwood, a blog of „The Economist”, 17 November 2016 (limited access)


- on hyperinflation – an example from Venezuela:

The monetary meltdown in Venezuela, by Francisco Toro, Washington Post 2.12.2016


On plans for a reform of the euro area:

Commission sets out roadmap for deepening Europe’s Economic and Monetary Union, 6 December 2017


Criticism of the price stability objective of central banks:

William White, The Dangerous Delusion of Price Stability, Project Syndicate, 14 Dec 2017


Criticism of cryptocurrencies:

Nouriel Roubini, Blockchain’s Broken Promises, Project Syndicate, 26 Jan 2018 




Archived presentations from previous academic years (for reference):

5b. Current matter – the „KNF affair”: issues of relevance for the stability of the banking sector. [Nov 2019]

5b. Current matter – demonetisation of high denomination banknotes in India [Nov 2016]