INTERNATIONAL ECONOMIC POLICY
Italian and English
The course provides advanced analytical tools for the theory of international economic policy both from the microeconomic point of view and from the macroeconomic point of view from the latest facts and theories. The objective is to answer through rigorous analytical tools to the following questions: How to establish the policy objectives of a central bank? What is the role of fiscal policy in a way that is interdependent? How to handle sovereign debt? Is it best to choose fixed rates or flexible exchange rates? What policies do policy makers have in a globalized market? How do financial markets affect the outcomes of monetary policy and fiscal policy? How can policy makers affect the financial market outcomes? What is the link between economic policy, globalization, growth and inequality?
Knowledge of Macroeconomics and Economic Policy in Open Economies in its basic content. Elements of linear algebra and statistics.
I block of lessons
The theory of economic policy in open economy: the pros and cons of co-ordination. Balance in the goods market and theoretical evolution of aggregate demand components: Alternative hypotheses and implications. The balance of payments, exchange rates and capital markets. The internal and external equilibrium. The balance of monetary policy. Taylor's rule and the role of central banks in the macroeconomic equilibrium. Simultaneous equilibrium and interdependence of open market economies: fixed and flexible exchange rates. Matrix analysis of macroeconomic equilibrium of exogenous shock effects. Balance of Income and Inflationary Expectations: Modern International Macroeconomics and the Role of Economic Policy.
II block of lessons
Tax Policy Theory. Tax policy in Europe. Theory of monetary policy. Monetary policy in Europe. International co-ordination and interdependence of economic policy. Economic policy in an imperfect world. The experience of the limits. The interdependence of economic policy choices. Economic policy in times of crisis: the role of fiscal policy and monetary policy. Inequality, Globalization and Economic Growth.
III block of lessons
Insights through reading and examining research papers from international journals on topical issues such as: the effectiveness of fiscal policy, the role of monetary policy in a globalized context, the relationship between financial markets, inequality and economic growth, European Monetary Union
The course includes lectures, tutorials and deepening of the essay on research topics related to the study program.
Canale R.R., Foresti P., Marani U., Napolitano O.,, Economic Policy. Theory and European Union, Hoepli, 2008. Cap.1 cap.2 cap.3 (excluding par.3.3 and 3.5) cap 4, cap.5
Bénassy-Quéré A., Benoît Coeuré, P.J., and Pisani-Ferry J. Economic Policy. Theory and Applications, The Mill 2014. Chapters 1 to 5
Teaching material on the e-learning portal with slides in English and essays on topical issues
The exam is based on a written test with open questions that require analytical insights and synthesis skills. The written test is accompanied by an oral test that verifies the autonomy and independence of thought also through the presentation of the results achieved in the in-depth research essays in the classroom.