88065 - Macroeconomics

Learning outcomes

The course is an introduction to the study of macroeconomics. It covers the main issues, methods, data, concepts and models. Students will be able and motivated to follow and understand the current debates on macroeconomic issues, as they are reported by the qualified press and media. A special focus will be on understanding and debating the appropriateness of the macroeconomic policies adopted in the Great Recession, and the roles of fiscal and monetary policies for the EU members that have adopted the euro. Students will also be prepared to follow more advanced courses on macroeconomic analysis and policies, should they want to do so in their graduate studies.

Course contents

Introduction

Introduction to Macroeconomics

Data and models

GDP

Classic theory: the economy in the long run

The long run

Income production, distribution and expenditure

Equilibrium in the goods market and in the financial market

The monetary system

Inflation

Unemployment

Labor market reforms in Europe and in Italy

Growth theory: the economy in the very long run

Economic growth and the Solow model: capital accumulation, steady state, policy, golden rule, population dynamics, technological progress, empirics, growth enhancing policies

Macroeconomics in the short run and economic policy

Business cycle theory: the economy in the short run

Introduction to short run fluctuations: AD-SRAS-LRAS IS-LM model

Economic policy, shocks, IS-LM and AD

Great depression, Japanese stagnation, Great recession, and European sovereign debt crisis, Covid-19 crisis

Aggregate supply and Phillips curve

Open economy

Open economy: trade balance and net capital outflows

Open economy: real and nominal exchange rate

Mundell-Fleming model

The debate on macroeconomic policy

Debt and deficit

Readings/Bibliography

N. Gregory Mankiw, Macroeconomics - International Edition, 10th edition, Macmillan, 2019.

Lecture notes at the Virtuale online platform

Teaching methods

Lectures and exercise classes.

Assessment methods

Three written mid-term exams or one final exam. The maximum possible score is 30 cum laude. The grade is graduated as follows:

<18 failed

18-23 sufficient

24-27 good

28-30 very good

30 cum laude excellent

Teaching tools

Lectures slides and material made available in advance on the e-learning web platform.

Office hours

See the website of Guglielmo Barone