Università degli Studi di Napoli "Parthenope"

Teaching schedule

Academic year: 
2021/2022
Belonging course: 
Course of Master's Degree Programme on ECONOMIC, FINANCIAL AND INTERNATIONAL SCIENCES
Disciplinary sector: 
ECONOMIC POLICY (SECS-P/02)
Language: 
Italian
Credits: 
9
Year of study: 
2
Teachers: 
Cycle: 
First Semester
Hours of front activity: 
72

Language

Italian and English

Course description

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 from the perspective of the EMU. The objective is to answer through rigorous analytical tools to the following questions: What is the role of fiscal policy in a context of interdependence among countries? How to handle sovereign debt? How to establish the policy objectives of a central bank? Is it better 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?

Prerequisites

Knowledge of Macroeconomics and Economic Policy in Open Economies in its basic content. Elements of linear algebra and statistics.

Syllabus

I block of lessons
The structure of economic policy in the Eurozone. The European Monetary Union: historical roots and recent events. The principles of economic policy from the Second World War to the collapse of the Bretton Woods agreements. The theory of optimal currency areas. Fiscal and monetary policy in different exchange rate regimes and perfect capital mobility. The Mundell-Fleming model. From foreign exchange agreements to the common currency: the New Consensus Macroeconomics. Fiscal policy in the Euro zone. The theory of fiscal policy in a Keynesian world. Fiscal policy and intertemporal approach. Effects on inflation and income of the expansionary fiscal policy: the slope of the aggregate supply curve. The evolution of the theoretical debate on fiscal policy and the case of the Eurozone. Public debt. Displacement effect in the monetary union.

II Block of lessons
Monetary policy: a general model. Theoretical foundations of monetary policy strategies: inflation vs unemployment. Taylor's rule. Monetary policy under fixed exchange rates. The evolution of monetary policy theory. Monetary policy and the objective of financial stability. Monetary policy and the objective of exchange rate stability. The transmission mechanisms of monetary policy. The issue of internal and external coordination of economic policy. The coordination of economic policy in the Euro zone. Effects of international spillovers under flexible exchange rates. Coordination of economic policy and financial markets. Economic policy coordination and external balance. The coordination of economic policy and the future of the Eurozone.

III block of lessons
Effectiveness of economic policy in the different exchange rate regimes: matrix analysis
Insights through the reading and examination in the classroom of research articles taken 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 structure of economic policy in the Eurozone. The European Monetary Union: historical roots and recent events. Fiscal and monetary policy in different exchange rate regimes and perfect capital mobility. the New Consensus Macroeconomics. Fiscal policy in the Euro zone. The evolution of the theoretical debate on fiscal policy and the case of the Eurozone. Public debt. Displacement effect in the monetary union. Theoretical foundations of monetary policy strategies: inflation vs unemployment. Taylor's rule. The evolution of monetary policy theory. The transmission mechanisms of monetary policy. The issue of internal and external coordination of economic policy. Insights through the reading and examination in the classroom of research articles taken 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

Teaching Methods

The course includes lectures, tutorials and deepening of the essay on research topics related to the study program.

Textbooks

Canale R.R., Mirdala R., Fiscal and Monetary Policy in the Eurozone. Theoretical concepts and empirical evidence. Emerald publishing, London, 2019.

Teaching material on the e-learning portal with slides in English and essays on topical issues.

Learning assessment

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.

More information