Students will improve their abilities in macroeconomic analysis and forecasting, by deepening their understanding of macroeconomic dynamics, in connection with the current theoretical debate on the elements of global stability and instability. As concerning monetary policy, students will deepen their knowledge of modern financial systems and their recent evolution, in particular concerning the problem of the euro. The fundamental relevance of “too big to fail” and of “whatever it takes” shall be addressed, and the consequences in terms of non-conventional monetary policies (in first instance, Quantitative Easing). Students will be thereby in a position to appreciate the conceptual reach of articles published in authoritative newspapers, and then to translate them in plain common language, so as to be able to setup and improve professional debates (perhaps with explanatory goals) with non-experts of the monetary-financial sector.
The student will learn in which sense the financial crisis has not been an “accident” of History, and rather a passage of the economic development of the last three decades, after the fall of the Soviet Union, the rise of China in global markets, the technological revolution associated with internet, the mass diffusion of smartphones and the potentialities of the cloud. This new phase of world development has profoundly influenced politics, in particular in the western advanced democracies. The student will grasp the meaning of the current so-called “crisis of democracy” and its far reaching implications, from the election of Trump to the Brexit, the spreading of populisms and the critical perspectives for the European Union.
By the end of the Course the student will develop a critical attitude towards:
• The new monetary policy after the crisis of 2008, the evolution of financial markets, the working of the banking system and the relevance of shadow banking. Among other things, the student will grasp the connection between economic growth and interest rates, between public deficits and growth.
• The foundations of the european monetary system, the euro; concerns about the future of the European Union and the potential for improving the political union.
• The tight connection between the evolution of the economic system and of the political system. The crisis of democracies after the economic crisis, the decline of the middle income class, the rise of inequalities within states, errors made by policymakers (like Greece), the conditions for a resourgence of the economic system in liberal-democratic terms.
• The student will develop abilities to express autonomous judgement on facts and interpretations.
• The student will acquire communication skills, i.e. the ability to present and explain, in a simple but not superficial way, the potential macroeconomic scenarios facing us, set forth original and critical interpretations, reasonably documented and motivated (“connecting the points”), to both qualified professional and non-experts in charge of decisionmaking.
• The student will develop the ability of learning to learn.