02538 - Monetary Economics and Policy

Learning outcomes

Expected knowledge

The aim of the course is to provide some tools to understand the role of monetary policy in the economy. It deals with many aspects of the functioning of the economic system: the role of money, how money affects the behaviour of economic agents and the functioning of financial markets, which are the goals of monetary policy and which are its possible effects.
The course is an useful complement to the course of Economics of financial intermediaries for students who have a special interest in money and finance.

 

Expected abilities
By the end of the course the student is expected to acquire the ability:

-         to understand the most important theories in monetary economics

-         to assess and evaluate the conduct of monetary policy by the world's central banks

Course contents

Prerequisites:

Microeconomics, Macroeconomics, Mathematics, Statistics, English

Contents:

1.      Money and financial markets

-         financial markets and expectations

-         the term structure of interest rates

-         the foreign exchange markets

2.      The conduct of monetary policy

-          the money supply process

-          monetary policy tools

-          the goals of monetary policy

3.      Monetary theory

-         the demand for money

-         transmission mechanisms of monetary policy

-         money and inflation

-         monetary policy and economic activity:  alternative models

-         short and long run effects of monetary policy

-         inflation, deflation and unemployment

4.      Financial markets in open economy

-         interest rates and foreign exchange rates

-         foreign exchange rates in the short run

-         foreign exchange rates in the long run

-         monetary policy in open economy

5.      Fiscal and monetary policy

-         intertemporal budget constraints

-         sustainability of fiscal policy

-         fiscal and monetary aspects of inflation

6.      Monetary Policy in the European Monetary Union

Readings/Bibliography

Selected chapters from the following textbooks:

1. F.C. BAGLIANO, G. MAROTTA, Economia monetaria, Il Mulino, 1999 (BM) .
2. O. BLANCHARD, Macroeconomia, Il Mulino, 2006 (BL)
3. K. CUTHBERTSON e M.P. TAYLOR, Modelli macroeconomici, Il Mulino, 1990 (CT)

4. F.S. Mishkin, S.G. EAKINS, G. FORESTIERI, Istituzioni e mercati finanziari, Pearson Paravia Bruno Mondadori, 2007 (MEF)

5. G.B. PITTALUGA, Economia monetaria, Hoepli 1999 (PT)
   

For detailed reading guides see (http://didattica.spbo.unibo.it/pais/stagni/index.html)

Lecture notes (APP) will be provided by the lecturer during the classes

 

Teaching methods

54 hours of lectures (6 hours per week)

Assessment methods

The final written examination is based on 6 open questions  on the topics of the course.

Teaching tools

Lectures

Links to further information

http://didattica.spbo.unibo.it/pais/stagni/index.html

Office hours

See the website of Anna Stagni