ECONOMIC POLICY AND FINANCIAL MARKETS
The course provides analytical tools of economic theory and international economic policy with special reference to the role played by money markets, financial and foreign exchange. The goal is to respond through rigorous analytical tools to the following questions: what is the role of economic policy in a globalized environment? How to determine the effectiveness of fiscal policy and monetary policy? What role of financial markets in determining the effectiveness of economic policy in a context of interdependence? Further investigations are connected with the institutional framework of EMU and the management of economic policy in developed countries after the financial crisis.
Knowledge of Basic Macroeconomics and Economic Policy
Exchange rates in open economy macroeconomics. National accounts and balance of payments. Exchange rates and currency markets: a portfolio approach. Currency, interest rates and exchange rates. Price level and exchange rate in the long run. Production and exchange rate in the short run. Fixed exchange rates and interventions in the exchange market. International macroeconomic policy. The International Monetary System: a historical overview Financial globalization: opportunities and crises. The optimum currency areas and the European experience. The countries in the developing world: growth, crisis and reform.
Lectures, with active participation of students, analysis of the results of the recent literature on current events, analysis and interpretation of the main national and international macro-economic data.
The exam will take place on two levels: a first trial designed to evaluate the ability of the study, interpretation and communication of the contents learned during the course through reports to be presented in the classroom. A second layer having as its object the specific content of the course through a written test with open questions and an oral test in support of the written examination content.
Krugman P. Obstfeld M.-Melitz M.J., Economia internazionale 2 - 10 ed, Pearson 2015