Green Finance and circular economy
The teaching aims to provide the basic knowledge necessary to understand the role of the financial system and monetary policy in fostering the transition to a low-carbon economy and facilitating the implementation of a circular economy.
Knowledge of some basic elements of microeconomics and macroeconomics is necessary for understanding the topics covered, and Economic Policy is a prerequisite.
The course content will be divided into the following lecture blocks:
Block I (24 hours)
Climate change; international climate change agreements; European climate legislation; circular economy: definitions and objectives; principles of the circular economy; main tools of the circular economy; circular economy models; measuring the circular economy;
- Block II (10 hours)
INTRODUCTION TO THE FUNCTIONING OF THE FINANCIAL SYSTEM AND MONETARY POLICY
General overview of the financial system; Central banks and the conduct of monetary policy; Instruments of monetary policy; Monetary policies in macroeconomic models;
- Block III (38 hours)
CENTRAL BANKS AND CLIMATE RISK
Climate change risks; Climate risk and macroeconomics: transmission channels; Central banks, climate risk and sustainable finance; Implications of climate change for monetary policy; Monetary policy and the role of Green Bonds; Green transition and inflation; Banking system supervision and climate risk; ESG criteria and sustainable finance;
The course will be organized in lectures and theoretical-practical discussions.
Istituzioni e mercati finanziari 9/Ed. Frederic S. Mishkin - Stanley G. Eakins - Elena Beccalli (selection of chapters). The above text will be supplemented by any material provided in the course of lectures or indicated by the lecturer.
The final exam includes a compulsory written test, covering both general theory and quantitative topics, and consists of closed or open-ended questions and exercises. Based on the written test results, the student is given the option of providing supplementary elements through an oral interview. During the course, there will be in-progress exercises also intended as opportunities for self-assessment, by the student, of the learning, achieved.
The learning objectives of the course can be declined as follows:
Knowledge and Ability to Understand - Upon completion of the course, the student should demonstrate the ability to discuss the role of central banks in achieving climate goals; know the role of monetary policy in achieving the green transition; discuss the main instruments of sustainable finance; and see how the circular economy works.
Ability to apply knowledge and understanding - The student, as a result of the analysis and simulation of practical cases, will be expected to develop critical analysis skills in the field of economics and finance and the ability to link concrete cases to abstract cases.
Autonomy of judgment - The teaching methodology is active and based on guided discussions and the illustration of case studies in which the student must demonstrate the ability to take argued positions with reference to the issues covered by the course.
Communication skills - The student should demonstrate the ability to express the knowledge acquired in a clear and effective manner, with argumentative coherence, systematic rigor, and ownership of economic-financial language.
Learning skills - The student should demonstrate the ability to reason independently about concepts related to climate change and the role of central banks in fostering the transition to a low-carbon economy and facilitating the implementation of a circular economy.