Learning objectives
Knowledge and understanding
The course aims to provide the basic analytical tools, necessary for the understanding of public authorities' actions in key markets in contemporary economic systems, in the context of an open economy and with specific reference to the case of the European Union. To do this, after an examination of the formation of equilibrium in markets for goods, money and financial assets, and in the labour market, in a frame of fixed exchange rates and flexible exchange rates, we will discuss the monetary and fiscal policies implemented by authorities within the macroeconomic equilibrium between aggregate demand and supply. Later on, these general concepts will be used to describe the evolution of economic policies in Europe in view of achieving economic and monetary union, with both the actions of monetary and fiscal policy that refer to the management of the euro zone. At the end of the course the student will be able to read, understand and interpret scientific articles and texts that relate to the actions of public authorities at various levels within the economic system of reference.
Applying knowledge and understanding
At the end of the course the student will be able to argue possible proposals for public policies, with particular reference to the constraints and degrees of autonomy enjoyed by the authorities of different levels of government within the framework of the EU and specifically taking into account the system of rules that underlie the functioning of the eurozone.
Making judgements
At the end of the course the student will be able to make judgments and a personal criticism on the policies of different levels of government on the basis of adequate support of informative and analytical tools.
Communication skills
At the end of the course the student will be able to communicate to possible interlocutors his-her assessments on topics of economic policy, using a clear and precise language with the help of up to date communication techniques.
Learning skills
Once acquired the main tools of analysis and evaluation of the policy at the various levels of government, the student must be able to make use of analytical tools to explore in depth the subjects of study of economic policy. To this end, updated reference lists will be also provided on the various topics discussed during the lectures of the course.
Course unit content
- Goods market equilibrium
- Balance-of-payments equilibrium
- Monetary policy equilibrium
- Equilibrium and simultaneous interdependence of markets
- Income equilibrium and determination of the price level
- From the European Monetary System (EMS) to the Economic and Monetary Union (EMU)
- The evolutionary framework of economic policies in Europe
- The characters of EMU
- The monetary policy of the European Central Bank
- Fiscal policy in Europe and the Stability and Growth Pact
- Banking and financial integration in Europe
- Regional convergence in Europe and EMU
- The evolution of the exchange rates of the euro
- Costs and benefits of a common currency
- The theory of optimum currency areas
- The euro zone crisis
Bibliography
a) Basic texts
- Marani U., Canale, R., Napolitano O. e Foresti P., Politica economica, La teoria e l’Unione europea, Hoepli, Milano 2008.
- Praussello F., Dallo SME all’UEM: la partecipazione dell’Italia all’integrazione monetaria in Europa, Dispensa, Università di Parma, marzo 2013.
b) Suggested Additional Reading
-Acocella N., Fondamenti di politica economica, IV ed.. Carocci, Roma, 2006.
- Blanchard O., Scoprire la macroeconomia, I e II, Il Mulino, Bologna 2009.
- Burda M. e Wyplosz C., Macroeconomia, Una prospettiva europea, Egea, Milano, 2006.
- De Grauwe, Economia dell’Unione monetaria, Il Mulino, Bologna, 2010.
- Montani G., L’economia politica dell’integrazione europea, Utet, Novara, 2008.
- Praussello F. (a cura di), Cinquant’anni e più di integrazione economica in Europa, Franco Angeli, Milano, 2010.
- Praussello F. (ed.) The experience eurozone: monetary integration in the absence of a European government, Franco Angeli, Milan, 2012.
Teaching methods
Lectures and practical classes based also on information tools in foreign languages.
Assessment methods and criteria
Written Test
The knowledge and learning ability will be assessed on the basis of two open-ended questions that relate to the topics covered by the basic course, referring to the text of Marani et. al. (with a rating of 8 points each). Judgements will be assessed on the basis of an open-ended question on the handout 2013 (a rating of 8 points). The communication skills and the ability to learn will be evaluated jointly in a synthetic form based on the answers given to the questions of the examination (with a rating of 6 points).
Other information
For the exam students can propose to the teacher the use of university reliable textbooks on economic policy, substitute or supplementary to those recommended by the teacher. Among the instruments of study it is also included the handout 2013 on the participation of Italy in the process of monetary integration in Europe, downloaded from the website of the course. Students who do not attend class on a regular basis can prepare for the exam by studying the first five chapters of the baseline text of Marani et al., together with the contents of the handout 2013. In any case, for those using the text above it is highly recommended to download from the site of teaching the errata of the volume.
