Learning objectives
Students will learn the main tools of the analysis of international trade, and will acquire the ability to understand dynamics and the impact of trade policy. Students will learn the determinants of public debt dynamics, acquire the ability to assess the factors of stability and instability. Students will also learn issues in economic policy in intertemporal contexts. They will acquire skills related to savings choices and the use of funds in presence of risky assets. The students 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 sector in the real world 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 fiscal and monetary policy and trade 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.
Course unit content
Yhe course is divided into two parts. The former (bullets 1-6) is lectured by prof. Mario Menegatti, the latter (bullets 8-15) by prof. Giovanni Verga.
1) The balance of payments and the relationship between different economies
2) international trade and exchange of goods between economies, with a focus on Ricardo, Heckscher, Ohlin and New Economic Geography models
3) Trade policy
4) The cost of short-and long-term public deficit and the long-term stability of public debt
5) Time inconsistency in monetary policy
6) Consumption choices with multi-period horizons and the Consumption Capital Asset Pricing Model
7) Assets, financial markets and financial intermediaries
8) The time structure of interest rates and long term interest rates (164-175)
9) The demand for currency for speculation (112-116; a1: all)
10) The operating procedures of the ECB, the behaviour of banks and the determination of bank interest rates
11) The monetary policy transmission mechanism: from the "money view" to the "credit view"
12) Inflation
13) The objectives and conduct of monetary policy
14) The exchange rate
15) ECB and Fed monetary policy.
Bibliography
First Parte:
-De Arcangelis G. “Economia Internazionale”, Mc Graw-Hill,ed. 2013 capitoli 3,4(escluso 4.7 e appendice),5(fino a 5.8, esclusi 5.1.1, 5.1.2,5.5.1, 5.7.1),6.1,6.2,6.3,6.4,9.3,10.1 e 10.2
-Blanchard O. “Scoprire la macroeconomia vol. 2”, Il Mulino, ed. 2011, capitoli 3.1, 3.2 e 8
-Blanchard O. “Scoprire la macroeconomia vol. 2”, Il Mulino, ed. 2003, capitolo 7.2
-Blanchard O. e Fisher S. Lezioni di Macroeconomia, capitoli 10.1.1 e 10.1.2
-Menegatti M. e Seravalli G. “La New Economic Geography e lo sviluppo locale”, Working paper n.5/2004 Economia e Politica economica del Dipartimento di Economia della Facoltà di Economia (scaricabile al sito http://swrwebeco.econ.unipr.it/RePEc/pdf/I_2004-05.pdf)
-Romer, “Advanced Macroeconomics”, 4th Edition, McGraw Hill, chapter 8.5
Seconda parte:
Second Part:
-Alessandrini P. (2011), “Economia e politica della moneta”, Il Mulino, Bologna: capp. I-III, V-VI, VIII (7.2), IX.9, X (10.7, 10.9, Appendice), XIV 14.1-14.3)
-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”, “La determinazione del tasso di cambio” scaricabili dal sito del docente http://economia.unipr.it/docenti/home.asp?id=82 e disponibili presso l’ufficio fotocopie
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, 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.
