Scienze Politiche e delle Relazioni Internazionali | ECONOMIC POLICY

cod. 1212100045

ECONOMIC POLICY

	1212100045
	DIPARTIMENTO DI SCIENZE POLITICHE, SOCIALI E DELLA COMUNICAZIONE

	POLITICAL AND INTERNATIONAL RELATIONS SCIENCE
	2014/2015

CURRICULUM ECONOMIA E POLITICHE PER LO SVILUPPO

	OBBLIGATORIO
	YEAR OF COURSE 2
	YEAR OF DIDACTIC SYSTEM 2008
	PRIMO SEMESTRE

TEACHING UNITS

	SSD	CFU	HOURS	ACTIVITY	TYPE OF ACTIVITY
	SECS-P/02	10	80	LESSONS	COMPULSORY SUBJECTS, CHARACTERISTIC OF THE CLASS

PROFESSORS

	ALBERTO BENNARDO T Curriculum
	GIUSEPPINA AUTIERO Curriculum

	Objectives
	THE MAIN OBJECTIVES OF THE COURSE ARE TO INTRODUCE STUDENTS TO THE BASIC MACROECONOMIC MODELS AND TO ILLUSTRATE THEIR POLICY IMPLICATIONS. THE FOCUS IS ON SHORT AND LONG RUN EFFECTS OF FISCAL AND MONETARY POLICIES IN CLOSED AND OPEN ECONOMIES. THE BASIC INDIVIDUAL INTERTEMPORAL CHOICE PROBLEM WILL BE ALSO PRESENTED, BY EMPHASIZING THE ROLE OF AGENTS' EXPECTATIONS AS A DRIVER OF INDIVIDUAL DECISIONS AND SHORT RUN MARKET OUTCOMES.

THE MAIN OBJECTIVES OF THE COURSE ARE TO INTRODUCE STUDENTS TO THE BASIC MACROECONOMIC MODELS AND TO ILLUSTRATE THEIR POLICY IMPLICATIONS. THE FOCUS IS ON SHORT AND LONG RUN EFFECTS OF FISCAL AND MONETARY POLICIES IN CLOSED AND OPEN ECONOMIES. THE BASIC INDIVIDUAL INTERTEMPORAL CHOICE PROBLEM WILL BE ALSO PRESENTED, BY EMPHASIZING THE ROLE OF AGENTS' EXPECTATIONS AS A DRIVER OF INDIVIDUAL DECISIONS AND SHORT RUN MARKET OUTCOMES.

	Prerequisites
	TO BE ADMITTED TO THE COURSE, STUDENTS MUST HAVE PASSED THE EXAM "ISTITUZIONI DI ECONOMIA"

	Contents
	THE COURSE IS DIVIDED IN TWO PARTS PART 1 THE IS-LM MODEL IS PRESENTED TO STUDY THE IMPACT MONETARY AND FISCAL POLICY IN A CLOSED ECONOMY. THE ANALYSIS IS SUBSEQUENTLY EXTENDED TO OPEN ECONOMIES BY INTRODUCING THE CONCEPTS OF NOMINAL AND REAL EXCHANGE RATE. AFTER STUDYING THE INTERACTIONS BETWEEN REAL AND FINANCIAL MARKETS IN OPEN ECONOMIES, THE EFFECTS OF FISCAL AND MONETARY POLICY IN FIXED AND FLEXIBLE EXCHANGE RATE REGIMES WILL BE ANALYZED. PART 2 A SIMPLIFIED MODEL OF INTERTEMPORAL CHOICE IS INTRODUCED IN ORDER TO STUDY THE IMPACT OF CONSUMPTION AND SAVING DECISIONS, TOGETHER WITH AGENTS' EXPECTATIONS, ON THE MAIN MACROECONOMIC AGGREGATES. SUBSEQUENTLY THE AS-AD MODEL IS PRESENTED AND THE MEDIUM AND LONG-TERM EFFECTS OF MACROECONOMIC POLICIES ARE INVESTIGATED. THE DETERMINANTS OF LONG TERM UNEMPLOYMENT AND INFLATION AND THE RELATIONSHIP BETWEEN INFLATION RATE AND OUTPUT GROWTH RATE ARE THEN ANALYZED. FINALLY THE CONCEPTS OF RATIONAL AND ADAPTIVE EXPECTATIONS ARE INTRODUCED, AND THE INTERTEMPORAL EFFECTS OF MACROECONOMIC POLICIES ARE ILLUSTRATED.

Contents

THE COURSE IS DIVIDED IN TWO PARTS

PART 1
THE IS-LM MODEL IS PRESENTED TO STUDY THE IMPACT MONETARY AND FISCAL POLICY IN A CLOSED ECONOMY. THE ANALYSIS IS SUBSEQUENTLY EXTENDED TO OPEN ECONOMIES BY INTRODUCING THE CONCEPTS OF NOMINAL AND REAL EXCHANGE RATE. AFTER STUDYING THE INTERACTIONS BETWEEN REAL AND FINANCIAL MARKETS IN OPEN ECONOMIES, THE EFFECTS OF FISCAL AND MONETARY POLICY IN FIXED AND FLEXIBLE EXCHANGE RATE REGIMES WILL BE ANALYZED.

PART 2
A SIMPLIFIED MODEL OF INTERTEMPORAL CHOICE IS INTRODUCED IN ORDER TO STUDY THE IMPACT OF CONSUMPTION AND SAVING DECISIONS, TOGETHER WITH AGENTS' EXPECTATIONS, ON THE MAIN MACROECONOMIC AGGREGATES. SUBSEQUENTLY THE AS-AD MODEL IS PRESENTED AND THE MEDIUM AND LONG-TERM EFFECTS OF MACROECONOMIC POLICIES ARE INVESTIGATED.
THE DETERMINANTS OF LONG TERM UNEMPLOYMENT AND INFLATION AND THE RELATIONSHIP BETWEEN INFLATION RATE AND OUTPUT GROWTH RATE ARE THEN ANALYZED.
FINALLY THE CONCEPTS OF RATIONAL AND ADAPTIVE EXPECTATIONS ARE INTRODUCED, AND THE INTERTEMPORAL EFFECTS OF MACROECONOMIC POLICIES ARE ILLUSTRATED.

	Teaching Methods
	LECTURES, EXERCISES' SESSIONS,WORKSHOPS AND PRESENTATIONS BY STUDENTS

	Verification of learning
	WRITTEN AND ORAL EXAM

	Texts
	PART 1 BLANCHARD,O., AMIGHINI, A.,GIAVAZZI,F., (2011) SCOPRIRE LA MACROECONOMIA I. QUELLO CHE NON SI PUÒ NON SAPERE, IL MULINO, BOLOGNA CAPITOLI 1,2,3,4,5,6 PART 2 BLANCHARD,O., AMIGHINI,A., GIAVAZZI, F. (2011) SCOPRIRE LA MACROECONOMIA I. QUELLO CHE NON SI PUÒ NON SAPERE , IL MULINO, BOLOGNA CAPITOLI 7,8,9,10 BLANCHARD,O., AMIGHINI,A., GIAVAZZI, F. (2011) SCOPRIRE LA MACROECONOMIA II. UN PASSO IN PIÙ, IL MULINO, BOLOGNA CAPITOLI 1,2,3,4

Texts

PART 1
BLANCHARD,O., AMIGHINI, A.,GIAVAZZI,F., (2011)
SCOPRIRE LA MACROECONOMIA
I. QUELLO CHE NON SI PUÒ NON SAPERE, IL MULINO, BOLOGNA CAPITOLI 1,2,3,4,5,6

PART 2
BLANCHARD,O., AMIGHINI,A., GIAVAZZI, F. (2011)
SCOPRIRE LA MACROECONOMIA
I. QUELLO CHE NON SI PUÒ NON SAPERE , IL MULINO, BOLOGNA CAPITOLI 7,8,9,10

BLANCHARD,O., AMIGHINI,A., GIAVAZZI, F. (2011)
SCOPRIRE LA MACROECONOMIA
II. UN PASSO IN PIÙ,
IL MULINO, BOLOGNA CAPITOLI 1,2,3,4