Uniwersystet Jagielloński

Course by Dr Marek Porzycki

The course was taught in the winter semester of 2020/21 and will be offered again from October 2021. 


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

4a. Monetary policy. Tools and policies. Part 1.

4b. Monetary policy. Tools and policies. Part 2.

5. Central bank functions. Seigniorage.

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

7. Central bank independence and the prohibition of monetary financing – the EU approach (updated on 18 Nov 2020 to add the case of the Governor of Latvijas Banka)  

8. Currency regimes

9. Currency union in Europe – background.

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

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

11a. Current matter – NBP’s year-end intervention on the currency market, Dec 2020.

12. Response to the euro area crisis.

12a. Eurosystem and NBP monetary response to the covid-19 pandemic.

13. Blockchain and cryptocurrencies.

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


Archived presentations from 2019/20. 

5a. Monetary policy tools – repetition.

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.


From 2020:

 – on the price stability mandate in view of structural changes resulting from decarbonisation of the economy:

H. Rey, The Core of the ECB’s New Strategy, Project Syndicate, 8 Oct 2020


- on monetary policy strategy in pandemic-caused crisis:

O. Issing, The Danger of Following the Fed, Project Syndicate, 2 Oct 2020



 Archive from previous years:

- 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)


- 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 (limited access) 


- 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


- on central bank independence

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


- on hyperinflation – an example from Venezuela:

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


Criticism of the price stability objective of central banks:

William White, The Dangerous Delusion of Price Stability, Project Syndicate, 14 Dec 2017 (limited access) 


Criticism of cryptocurrencies:

Nouriel Roubini, Blockchain’s Broken Promises, Project Syndicate, 26 Jan 2018 (limited access)