- Docente: Gianpaolo Rossini
- Credits: 8
- SSD: SECS-P/02
- Language: Italian
- Teaching Mode: Traditional lectures
- Campus: Forli
- Corso: Second cycle degree programme (LM) in International relations and diplomatic affairs (cod. 8783)
Learning outcomes
The aim of the class is to endow students with the ability to carry out independent analysis of issues in open macroeconomics with a special emphasis on the pros and cons of international capital mobility, on foreign debt, on global imbalances and the political economy of financial globalization. Each student is expected to interpret and understand macro integration processes and their implications for global stability, welfare and global peaceful coexistence with a critical touch.
Course contents
The program goes through specific issues in Open Macroeconomics and delivers a novel interpretation of international capital mobility after 2008, along the following lines:
1. the current account (CA) of the Balance of Payments of a country as an intertemporal choice
2. the benefits of intertemporal consumption
3.1. benefits, costs and risks of financial openness when there are large international cross flows of assets
3.2. optimal investment in a dynamic financially open economy
4. costs and benefits of international capital mobility
5. external debt sustainability
6. currency unions (and optimal electoral areas)
7. international portfolio diversification before and after 2008 and the paradox of a national-foreign currency
7. 1 foreign exchange reserves and the IMF
8. Lucas paradox and international financial flows.
9. Financial openness: conclusion and rejoinder on costs and benefits
10. Back to the present: external Debt, public Debt and the roots of the 2008 crisis and beyond
Readings/Bibliography
(BI) Banca d'Italia (1995) Tematiche istituzionali: Manuale della Bilancia dei pagamenti in Italia
(BCO ) Basevi, G, G. Calzolari, G. Ottaviano (2002) Economia Politica degli scambi internazionali, Carrocci editore, Roma
(IMF) International Monetary Fund 1993 Balance of payments manual. 5th. ed. -Washington
(LR) Lucas, R. (1990) Why doesn't capital flow from rich to poor countries? American Economic Review v.80 p.92 – 103
(FT) Feenstra R. and A. Taylor (2008) International Macroeconomics Worth Publisher
(ME) Melvin, M. (2004) International Money and Finance , Addison-Wesley, New York.
(OR) Obstfeld M. and Rogoff K. (1996) Foundations of International macroeconomics. MIT Press.
(OR2000) Obstfeld M. and Rogoff K. (2000) The six major puzzles in international macroeconomics: is there a common cause? NBER Working papers n. 7777 . www.nber.org
(S) Schlitzer, G. (2000) Il Fondo Monetario Internazionale. Il Mulino, Bologna.
Frankel J.A. and Rose A. K. (1996) The endogeneity of the optimum currency area criteria. NBER Working Paper # 5700
Gros, D. (2004) Profiting from the euro? Seigniorage Gains from Euro Area Accession. Journal of Common Market Studies, 42, (4) 795-813.
Feldstein, M.S. and Horioka C. Y.(1980) Domestic saving and international capital flows. Economic Journal 90, 314-29.
Blanchard, O. and Giavazzi F. (2002), “Current Account Deficits in the Euro Area: The End of the Feldstein-Horioka Puzzle,” Brookings Papers on Economic Activity 2, pp.148-186.
The Economist (The retreat from everywhere: Led by European banks, the world's lenders are pulling back to their home markets) Apr 21st 2012
Obstfeld M. (2012) Does the current account still matter? NBER working paper # 17877,
Rossini G. (2010) Lo strabismo di Maastricht http://www.lavoce.info/articoli/pagina1001698.html
Sapir and Sekkat (1999) Optimal electoral areas. Should Europe adopt a single election day? European Economic Review 1595-1619
Breuss, (2008), A common election day for the Eurozone? Kyklos 19-32
Rey Helen, (2013), Dilemmas and Trilemmas: the global financial cycle and monetary policy independence. Mimeo
Stiglitz J (2014) Reconstructing macroeconomic theory to manage economic policy NBER WP 20517
Eugeni Sara (2015) An OLG model of global imbalances , Journal of International Economics, 95 (1), 83-97.
Podrecca, E. and G. Rossini (2015) " Wages and international factors' mobility". August Review of Development Economics
For all lectures further references and notes are on the Web.
Teaching methods
Most lectures are based on theoretical analyses of international macroeconomics and political economy.
The most common used tools are mathematical models and graphical presentations.
Empirical studies and statistical measurement of some key variable will be provided.
P.S. The student is required to possess a reasonable background in Macroeconomics, Microeconomics, Statistics and International Economics (at the laurea triennale tier). Applied Econometrics is a good complement, in particular for those willing to write a thesis on topics of this course.
Assessment methods
For those attending lectures: written exam (only once) possibly
with viva voice additional discussion. Written exam is based on
multiple choice questions, open questions and a few applied
problems. During classes the teacher will ask questions. Right
answers will be rewarded with points to be added to the written
exam grade.
For those not attending course the exam is only viva voice at assigned dates.
P.S. Students are strongly advised to attend classes. During lectures bonuses will be granted for replies to questions raised by the teacher and for home assignments.
Teaching tools
Blackboard and PC projector for files available – access restricted to enrolled students - on the web without copyright limitations, specific readings provided during classes and referred in the lecture-files online.
Office hours
See the website of Gianpaolo Rossini