MACROECONOMICS AND FINANCIAL MARKETS
Knowledge and understanding: The student should be able to interpret the macroeconomic dynamics that characterize contemporary markets; should be able to measure the short-term fluctuations of the main real aggregates (GDP, Consumption, Investments) and financial aggregates (loans, stock prices, interest rates); should be able to understand the role that financial markets may have in cyclical fluctuations and in determining the macroeconomic equilibrium.
Applying knowledge and understanding: The student should be able to design and carry out studies to date business and financial cycle using the main macroeconomic data bases; he should be able to understand the role of frictions in financial markets for macroeconomic outcomes.
Making judgments: the student should develop a critical ability to independently assess the cyclical features of real and financial aggregates and their interconnections, and the effects of policies.
Communication The student should be able to communicate with the aid of synthetic reports and charts; he should be able to use the scientific language correctly to analyze cyclical fluctuations and macroeconomic scenarios in general.
Lifelong learning skills: Students should be able to update their knowledge by consulting both scientific texts and official documents of entities dealing with economic and financial policy so as to acquire the ability to attend specialized seminars and policy debates, as well as post graduate courses on Macroeconomic and financial themes.
A good grasp of the basic tools of economic analysis, micro and macro, is necessary, as well as a good understanding of the mathematical concepts underlying the processes of optimization.
The first part of the program focuses on consumer choices and investment decisions in a dynamic context, pointing out that uncertainty and the absence of complete markets affect the aggregate equilibrium.
The second part of the program will examine in a context of general economic equilibrium, characterized by imperfections in financial markets, the role that these latter may have as mechanisms of amplification and propagation of business cycle fluctuations (credit channel and financial accelerator).
Finally, the link between financial markets and the real economy will be studied empirically, using basic statistical tools of time series analysis. Major macroeconomic aggregates (Pil, aggregate demand components, financial variables) will be studied using specific sw (Gretl and JMulti) that allow the analysis of the economic cycle, both with the classic approach and with the approach of the growth cycle.
Lectures, classroom discussions of official documents by economic and financial institutions, on policy decisions related to the themes of study, laboratory in time series analysis with appropriate econometric sw.
D Romer, Advanced economics, Mc Graw Hill , fourth edition (selected chapters).
M. Wickens, Macroeconomic Theory. A dynamic general equilibrium approach. Princeton University Press, (selected chapters).
Slides with additional material are available on e-learning portal
Additional reading will be provided during the course.
The assessment during the course, will be based on the moments of collective discussion and the request to draft short papers or critical notes to deepen the topics covered during classes. At the end of the course there will be a final test with: questions and exercises(part 1); case study for business cycle dating (part 2).
The vote is expressed in scale from 0 to 30, and it is a weighted average of the two parts of the exam.