ECONOMIC AND FINANCIAL POLICY
The course in Economic and Financial Policy gives students an understanding of the role of monetary variables in a modern market economy. In this context, it explores the value of money, the reasons for its demand, supply patterns and the monetary policy functions performed by central banks. The course also presents the broad context of financial analysis and the highly topical issues relating to the stability and efficiency of financial markets.
The role of the monetary authorities is examined in terms of the relationship between instruments and objectives and the way monetary policy operates. Finally, particular attention is devoted to the institutional reality of the European Economic and Monetary Union.
Knowledge of Microeconomics and Economic Policy in basic content. Knowledge of elementary algebra, the ability to work with graphs, elementary notions of mathematical analysis (especially derivatives) facilitate the understanding of the topics.
PART I EXCHANGE RATES AND MACROECONOMICS IN THE OPEN ECONOMY
Chapter 2. National accounts and balance of payments
Chapter 3. Exchange rates and foreign exchange markets: a portfolio approach
Chapter 4. Money, interest rates and exchange rates
Chapter 5. Price levels and exchange rates in the long run
Chapter 6. Output and the exchange rate in the short run
Chapter 7. Fixed exchange rates and foreign exchange market intervention
PART II INTERNATIONAL MACROECONOMIC POLICIES
Chapter 9. Financial globalisation: opportunities and crises
Chapter 11. Developing countries: growth, crisis and reform
I (24 hours) EXCHANGE RATES AND MACROECONOMICS IN THE OPEN ECONOMY
National Accounts and Balance of Payments; Exchange Rates and Foreign Exchange Markets: a Portfolio Approach; Money, Interest Rates and Exchange Rates; Price Level and Exchange Rate in the Long Run; Output and Exchange Rate in the Short Run; Fixed Exchange Rates and Foreign Exchange Market Intervention
II (24 hrs) INTERNATIONAL MACROECONOMIC POLICIES
Financial globalisation: opportunities and crises;Developing countries: growth, crisis and reform.
The course consists of lectures, during which the topics of the programme will be discussed, and exercises, during which the notions learned will be applied to concrete cases.
Krugman P. Obstfeld M.-Melitz M.J., International Economics 2 - 11th ed, Pearson 2019
The examination is based on a structured written test to assess the student's achievement of the learning objectives, with an oral examination at the discretion of the lecturer; inter-course tests are available for those attending.
Prerequisites: Institutions of Economics