Learning objectives
Students will learn to understand the main phenomena of the financial and credit markets, the determination of main asset yields and liabilities, and their interrelationships with the real world and central bank policies.
At the end of the course, students will have acquired:
Applying knowledge and understanding
• specialized tools for macroeconomic analysis of intermediate and advanced macroeconomic models.
• basic tools for assessing the impact of interventions of monetary policy.
Making judgments
• Ability to assess and make independent evaluations of the conclusions and results of macro-economic analysis and the effects of alternative economic policy actions and interventions.
Communication skills
• Ability to draw up and present critically macroeconomic studies, the implications of different policy choices and scenarios given by economic statistics to specialist and non-specialist audiences.
Ability to learn
• Ability to explain complex topics in a concise manner through the use of graphs and mathematical formulas.
Prerequisites
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Course unit content
1) Assets, financial markets and financial intermediaries
2) The time structure of interest rates and long term interest rates (164-175)
3) The demand for currency for speculation (112-116; a1: all)
4) The operating procedures of the ECB, the behaviour of banks and the determination of bank interest rates
5) The monetary policy transmission mechanism: from the "money view" to the "credit view"
6) Inflation
7) The objectives and conduct of monetary policy
8) The exchange rate
9) ECB and Fed monetary policy
10) The financial crisis
Full programme
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Bibliography
-Alessandrini P. (2015), “Economia e politica della moneta”, Seconda edizione, Il Mulino, Bologna: chapters; I-III, V-VI, 7,2, VIII-XI, 13.1-13.2, XIV-XV.
-Verga G. dispense: “Central banks and the public: the importance of communication”, “La domanda di moneta (integrazione)”, “La politica monetaria della BCE”, “La politica monetaria della Fed”, downloadable from the website:
http://economia.unipr.it/docenti/home.asp?id=82
and available at the department photocopy service.
Teaching methods
• Knowledge and understanding: lectures
• Applying knowledge and understanding: examples applied to real economic problems
• Making judgements: during this module, students will be encouraged to identify strengths and weaknesses of the main economic theories and their usefulness in real world applications
• Learning skills: each topic will be addressed first, explaining the problem to be solved, and then critically analyzing the adopted solutions
• Communication skills: the teacher will illustrate the meaning of the most common terms used by the economic community.
Assessment methods and criteria
Written examination.
The exam will consist of four general questions, two related to the first part of the course (primo modulo) and two to the secondo (secondo modulo), and each divided into different parts; some concerning applications.
The acquisition of knowledge and technical language will be assessed by the answers to the theoretical sections of the questions. The ability to apply the knowledge and learning skills will be evaluated in the
applications and in the treatment of specific cases and problems. The ability to make judgements will be evaluated in the explanation and comments written on cases analysed.
Other information
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