02538 - Environmental Economic Policy

Learning outcomes

Expected knowledge

The aim of the course is to provide some tools to understand the role of monetary policy on the economy.

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 – summary

The course 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

Contents – details

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

P. KRUGMAN, M. OBSTFELD, Economia internazionale 2, Pearson, 2007 (capp.2, 3, 5).

F.S. MISHKIN, S.G. EAKINS, G. FORESTIERI, Istituzioni e mercati finanziari, Pearson Paravia Bruno Mondadori, 2012 (capp. 1-5, 14-15)

G.B. PITTALUGA, Economia monetaria: moneta, istituzioni, stabilità, Hoepli 2012 (capp.4-7)

Lecture notes will be provided by the lecturer during the classes. Downloadthrough the link "Teaching Materials" in this Web page.

Teaching methods

60 hours of lectures (6 hours per week)

Assessment methods

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

Teaching tools

Lectures

Office hours

See the website of Anna Stagni