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
	2015/2016

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
	FIRST PART DURING THIS PART OF THE COURSE WE WILL FOCUS ON THE FUNCTIONING OF THE ECONOMYC SYSTEM IN THE SHORT RUN. IN THIS RESPECT THE AIM IS TO PROVIDE ADEQUATE KNOWLEDGE OF THE TOOLS OF ECONOMIC POLICY THAT CAN AFFECT INCOME ALSO IN OPEN ECONOMIES. SECOND PART THE MAIN OBJECTIVES OF THIS PART ARE TO ILLUSTRATE THE POLICY IMPLICATIONS OF MACROECONOMIC MODELS, THE FOCUS WILL IN PARTICULAR BE ON THE MEDIUM-RUN EFFECTS OF FISCAL AND MONETARY POLICIES. 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. AT THE END OF THE COURSE THE STUDENT IS EXPECTED TO KNOW THE DIFFERENT COMPONENTS OF THE REAL AND FINANCIAL SECTORS AND HOW THEIR INTERACTION MAY AFFECT THE EFFECTIVENESS OF ECONOMIC POLICY. MOREOVER S/HE WILL BE ABLE TO UNDERSTAND HOW SIMILAR MEASURES OF POLICY MAY HAVE A DIFFERENT IMPACT DEPENDING ON THE SPECIFIC CONTEXT WHERE THEY ARE IMPLEMENTED. THIS ABILITY WILL BE DEVELOPED ALSO THROUGH A COMPARATIVE ANALYSIS OF DIFFERENT CASE STUDIES.

FIRST PART
DURING THIS PART OF THE COURSE WE WILL FOCUS ON THE FUNCTIONING OF THE ECONOMYC SYSTEM IN THE SHORT RUN. IN THIS RESPECT THE AIM IS TO PROVIDE ADEQUATE KNOWLEDGE OF THE TOOLS OF ECONOMIC POLICY THAT CAN AFFECT INCOME ALSO IN OPEN ECONOMIES.

SECOND PART
THE MAIN OBJECTIVES OF THIS PART ARE TO ILLUSTRATE THE POLICY IMPLICATIONS OF MACROECONOMIC MODELS, THE FOCUS WILL IN PARTICULAR BE ON THE MEDIUM-RUN EFFECTS OF FISCAL AND MONETARY POLICIES. 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.

AT THE END OF THE COURSE THE STUDENT IS EXPECTED TO KNOW THE DIFFERENT COMPONENTS OF THE REAL AND FINANCIAL SECTORS AND HOW THEIR INTERACTION MAY AFFECT THE EFFECTIVENESS OF ECONOMIC POLICY. MOREOVER S/HE WILL BE ABLE TO UNDERSTAND HOW SIMILAR MEASURES OF POLICY MAY HAVE A DIFFERENT IMPACT DEPENDING ON THE SPECIFIC CONTEXT WHERE THEY ARE IMPLEMENTED. THIS ABILITY WILL BE DEVELOPED ALSO THROUGH A COMPARATIVE ANALYSIS OF DIFFERENT CASE STUDIES.

	Prerequisites
	PREREQUISITES MICROECONOMICS IS REQUIRED

	Contents
	FIRST MODULE MACROECONOMICS IN THE SHORT RUN: KEYNESIAN CROSS MODEL THE IS CURVE THE DEMAND FOR MONEY THE LM CURVE ECONOMIC POLICY IN THE IS-LM MODEL IN A CLOSED ECONOMY ECONOMIC POLICY IN THE IS-LM MODEL IN AN OPEN ECONOMY. SECOND MODULE 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-TERM EFFECTS OF MACROECONOMIC POLICIES ARE INVESTIGATED. THE DETERMINANTS OF 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

FIRST MODULE
MACROECONOMICS IN THE SHORT RUN:
KEYNESIAN CROSS MODEL
THE IS CURVE
THE DEMAND FOR MONEY
THE LM CURVE
ECONOMIC POLICY IN THE IS-LM MODEL IN A CLOSED ECONOMY
ECONOMIC POLICY IN THE IS-LM MODEL IN AN OPEN ECONOMY.

SECOND MODULE
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-TERM EFFECTS OF MACROECONOMIC POLICIES ARE INVESTIGATED.
THE DETERMINANTS OF 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
	EACH PART OF THE COURSE CONSISTS OF 40 HOURS OF LECTURING, EXERCISES' SESSIONS AND PRESENTATIONS BY STUDENTS.

	Verification of learning
	AS MOST OF THE TOPICS ARE CHARACTERIZED BY A MATHEMATICAL APPROACH, WE STRONGLY RECOMMEND THAT STUDENTS ATTEND THE CLASS. THE OTHERS CAN STUDY THE TEXTS SUGGESTED IN THE READING LIST. STUDENT ASSESSMENT: WRITTEN AND ORAL EXAMINATION