Università degli Studi di Napoli "Parthenope"

Teaching schedule

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First Semester
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Course description

Within basic theoretical frameworks, the course analyses the role of money, central banking and the transmission of monetary policy in developed countries, with special emphasis on the European Union and the ECB.

Expected learning outcomes
Knowledge and understanding: The student should be able to understand the role of financial intermediaries and the management and transmission of monetary policy in modern industrialized economies with particular attention to the Economic and Monetary Union (EMU). In addition, he/she should also know the main quantitative models of international economic policy.
Applying knowledge and understanding: the student should be able to apply the acquired knowledge to the evolution of modern monetary systems and monetary policies implemented in the EU and the USA.
Making judgments: the student should be able to use the acquired knowledge also in an autonomous way, by also applying them to specific issues and problems, such as to evaluate the goodness of the specific policies implemented by the major central banks.
Communication: the student should be able to answer in a clear and thorough way to the questions of the written examination and to those of the possible oral examination.
Lifelong learning skills: the student should be able to show a good learning ability, by widening, for example, his/her knowledge with use of relevant bibliographic references. The student will have the opportunity to apply the knowledge gained in previous courses integrating them with the additional professional skills that characterize the course.


General knowledge and reasoning ability. Some basic knowledge of macroeconomics, if previously acquired by the student, can facilitate the learning process; this is basically covered by the first-level courses offered by the university Parthenope in the economic area. For students coming from different first-level degree programs, an integration including a relevant bibliographic references will be provided.


Study Program/Contents:
Part I (24 HOURS):
Money as means of payment: the Quantity Theory. Money as store of value: Liquidity Preference Theory. Money demand and monetary policy in the IS-LM model. Money demand in the theory of portfolio allocation.
Part II (24 HOURS):
Final targets of monetary policy. Features and governance of the ECB and the Federal Reserve. Intermediate targets and the two-pillar strategy. Operating procedures and monetary policy tools at the ECB and the FED. Monetary policy making under uncertainty. Monetary policy in the recent financial crisis and the great recession. The market for monetary base and money supply. Endogenous money supply in the IS-LM model.
Part III (24 HOURS):
The interest-rate channel and the term structure of interest rates. The exchange-rate channel and monetary policy in an open economy. The asset-price channel. Information problems and the credit channel.

Course organization: traditional (classroom lessons)
The course includes frontal lessons during which the themes of the program are discussed.

Teaching Methods

The course includes frontal lessons during which the themes of the program are discussed.


Suggested readings:
G. Di Giorgio. Economia e Politica Monetaria, CEDAM, u.e.
Further references will be provided at the beginning of the course.

Learning assessment

Learning assessment:
The assessment is based on a written examination composed of thematic questions aimed at evaluating the actual achievement of the objectives on part the students. In order to evaluate the depth in understanding general theoretical knowledge, the class work includes open questions on the program’s topics. In their answers the students should be able to show and illustrate the fundamental concepts acquired during their studies. An oral examination can also be held, in case the teacher judges it useful to better ascertain the student’s knowledge. The vote of the oral examination is expressed in scale from 0 to 30, and it is averaged with the vote of written examination (equal weighting) in order to determine the final vote.

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