Economic History: Banking, Money and Monetary Systems 2400-M1HG1

Course outline (65000 characters max)

1. Academic writing classes. The rules of academic writing, how to prepare proposal, bibliography, notes, search data, etc.

2. Economic and political context of monetary systems evolution. The main periods of economic development in the world history. The evolution of economic systems – from traditional to modern economy. The world-systems approach: core and periphery. Two waves of globalization.

3. The monetary systems from historical perspectives. Definition, evolution of money forms, functions of the money. Phases of development of monetary systems. Money supply and inflation. National and international money.

4. Banking system from historical perspectives. Definition, its constituents, relations between them, the norms that define the positions and tasks of particular institutions. Features of banking systems in different states.

5. Money metallic and money paper. Money in late Middle Ages and on the threshold of modern era. Towards centralization of paper money emission. The monetary experiments – system of John Law. First monetary theories – quantity theory of money.

6. Formation of banks and credit in early modern epoch. Commercial banks of late Middle Ages and on the threshold of modern era. The rise of proto-capitalist financial institutions. Bank products and bank risk. First bank crises.

7. First emission banks. Principles of monetary policy. The origins and evolution of central banks. Monetary policy. Bimetallic standard versus silver or Gold Standard. The price–specie flow mechanism. The nature of money – the debates between the bullionists and anti – bullionists, banking school.

8. The First Globalization. The Gold Standard Era. The Gold Standard monetary mechanism. Universal convertibility.

9. The monetary policy of central banks in the Gold Standard Era. The currency system and monetary policy of central banks. The monetary unions (Scandinavian, Latin, German). New position and tasks of central banks.

10. Fast growth of banking in the industrial era. The emergence of modern commercial banking in the 19th century. World economy in the second half of the 19th century. National economic policy. Models of commercial banks.

11. The Genoa Monetary Order. Gold Standard and Gold Exchange Standard. Disintegration of the World economy after 1918. The currency systems.

12. Monetary stabilization policy of the twenties. The great inflations and lessons for monetary policy. Fiscal and monetary policies in the stabilization of the economic cycle. Monetary policy in selected countries (UK, US, France, Germany). Bank of Poland and Polish monetary policy.

13. The Great Depression and collapse of the Gold Standard. The reasons of the Great Depression. The role of the Gold Standard in the Great Depression.

14. The Great Depression and new monetary policy. The impact of the crisis on the evolution of monetary system. Monetary policy: British, Scandinavian and German “experiments”. Polish monetary policy (deflation).

15. The Great Depression and banking crisis. The impact of the Great Depression on banking crises – UK, US, Germany, Central Europe. The mechanism of banking crashes: bank runs, banking panics.

16. The Great Depression and safety net. Financial regulations and safety net for banks (UK, US, Germany, Poland).

17. The Bretton Woods System. Economic aspects of the Second World War. Currency systems: the West (Bretton Woods Agreement) and Eastern Europe.

18. Economic growth and Keynesian monetary policy. Keynes's theory of monetary policy. Monetary Policy and the “long boom” (1950s-1960s).

19. Post Breton Woods Era. World economy crisis of the seventies and its consequences. The End of the Bretton Woods System.

20. The monetary policy since the 1980s. New paradigms in economic policy- monetarism. The new goal of central bank policy. Lessons on monetary policy from the 1980's.

21. Financial Globalization and Monetary Policy (1990-2010). Financial globalization and domestic monetary conditions (the impact of globalization on domestic inflation). International monetary policy coordination. The Taylor rule.

22. European Monetary Union. Currency unions in the past (the reasons of rise, the reasons of failure). A major step in the integration of EU economies. The coordination of economic policies, a common monetary policy (ECB), new status of emission banks.

23. Polish monetary policy (1990-2010). The great inflation 1990 s. and its aftermath: the economic explanations and interpretations. Monetary policy before and after Poland’s accession to the European Union. NBP’s monetary policy: objectives and tools.

24. Banking in the second half of the twentieth century. The international integration of financial markets. The financial capitalism – reasons of structural changes in world economy.

25. Deregulations and development of international banking. Liberalization of financial markets and deregulations of banking systems. Roles and objectives of modern central banks.

26. Polish banking at the close of the twentieth century. Changes in the banking systems of the East-European countries, building of commercial banking.

27. The problem of banking stability, financial contagion and systemic risks (1990s). Bank runs. Monetary arrangements, financial crises in a financially-liberalized emerging market economy. IMF and development lending and aid. Safety nets and moral hazard in banking

28. Global banking: global reach, global risk. Financial crises 2008-2010: causes, effects and solutions. IMF and crisis lending. The problem of global lender of last resort.