Learning objectives
In addition to completing some macroeconomics topics, the purpose of the course is to provide elements for understanding current monetary policy and, in particular, that of the European Central Bank and the importance of market expectations for the trend in the main macroeconomic variables.
Prerequisites
Macroeconomics, basic mathematics
Course unit content
The course deals with the operation of the financial sector in a modern economy and with monetary policy In particular, the following topics are discussed:The term structure of interest rates.Long-term rates: role of expectations and influence of the Central Bank.Demand for money.The importance of credit in a macroeconomic modelTime inconsistency.Exchange rate and balance of payments.The main monetary policy strategies.The European Central Bank.Capital flows to developing countries.
Full programme
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Bibliography
Essential bibliography:a) Pittaluga G.B. (1999), Economia Monetaria (Seconda Edizione), Hoepli,Milano:-Chap. 4: 99-104; 112-116.-Chap. 10: 277-279; 282-286; Study: 289-294.-Chap. 11: 317-325.-Chap. 13: 390-401.-Chap. 14: 405-421-Chap. 15: 432-438, 442-443.-Chap. 16: 467-474.b) Lecture notes on Monetary Economics (Institutions) ac. year 2005/2006, available at the photocopy office of the Economics Faculty and on the Internet site on the subject (http://economia.unipr.it/docenti/prog.asp?id=82&id_corso=64) in the 'Materiali Didattici' ('Teaching Materials') section, at paragraphs 'Dispense del corso' ('Course Lecture Notes') and 'Lucidi e diapositive delle lezioni' ('Lecture Transparencies and Slides').
Teaching methods
The course is conducted mainly through classroom lectures. Concrete cases regarding interest rate forecasts and Central Bank policy are presented and discussed.Assessment method:Written open question test. The student is required to answer two questions out of 3. Facsimiles of questions can be found on the Internet site on the subject (http://economia.unipr.it/ docenti/prog.asp?id=82&id_corso=64) 'Materiali Didattici' ('Teaching Materials') section, then 'Esercizi e prove d'esame' ('Exercises and Examinations').
Assessment methods and criteria
writen examination
Other information
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