Economia e politica monetaria - ENG

Monetary Economics and Policy
Prof. Anna Carabelli

Course Code: CODICE
Subject code: SSD SECS-P/01
8 ECTS – 64 hours
Location: Novara

Educational aims
The course supplies the fundamental theoretical tools of monetary economics and policy, tools which are necessary to understand current macroeconomic events.

Content of the course
This course is divided in two parts.
Part 1 – 6 CFU
1. Money
2. Money and wealth effect.
3. Money market and equity market.
Supply and demand for money and monetary mechanism.
1. Demand for money. – The classical approach. – The Keynesian approach: speculation and liquidity preference
2. Money supply.
3. Monetary controls: quantity of money or rate of interest?
Central bank, stability of prices and monetary policy
- Money, inflation and growth. Rules and discretion
Mechanisms of transmission and channels of monetary influence.
-  Money channel
- Money and aggregate spending.
- Money, portfolio equilibrium and aggregate spending; money, bonds and real activities
Financial markets and monetary policy
Short and long term interest rates.
Money and open economy
- The behaviour of open economies

Part 2 -  2 CFU
Money and the open economy
- The behaviour of open economies; short and long term perspective.
Critical analysis of Mundell-Fleming model. Activities, expectations and exchange rates.

Prerequisites
Economics or Macroeconomics, Economic policy

Course Texts
IL SOLE24ORE

Teaching methods
Lectures and reading/interpretation of “Il Sole24ore”.

Attendance of the course
The attendance of the course is highly recommended. For those who cannot attend the course the following textbook is suggested: G. B. PITTALUGA, Economia Monetaria, Hoepli, Milano, (This book is available in the library) plus the reading of the most recent articles of Il Sole24Ore, in particular articles concerning international macroeconomics (for example, US monetary policy, dollar and euro trends, money markets, interest rate spreads).

Examination
Written examination