There are no prerequisites. Successful completion of Advanced Macroeconomics and Financial Investment and Corporate Finance is strongly recommended.
The objective of the course is to provide students with the necessary tools for the analysis of modern financial and monetary systems in order to understand the concept of financial stability and the role played by the relevant institutions at the domestic, European and global level.
To this end, theoretical and empirical analysis tools will be provided, aimed at studying the behavior of the main financial operators, financial and foreign-exchange markets and their interactions with the overall economic system in the context of the global economy. Furthermore, it will provide insights into the causes and consequences of inefficiency phenomena of the financial and foreign-exchange markets, which are also particularly relevant for specific operational contexts, such as the relationship between banks and enterprises.
The expected learning outcomes will consist of the following skills:
- understand and synthesize both academic and professional literature in the field of economic-financial analysis and forecasting
- analyze and interpret the characteristics and evolution of financial systems, also from a comparative point of view
- understand the causes and consequences of financial inefficiencies for the functioning of markets, for the policy choices of institutions and in banks-enterprises relations
- elaborate autonomously analyses of macroeconomic-financial scenarios, giving particular importance to the theme of financial sustainability.
- International Finance and International Macroeconomics: an Overview;
- the structure of financial systems
- the theory of financial efficiency
- the causes and consequences of financial market inefficiency
- the foreign-exchange market
- exchange rate regimes
- the Proposals for an International Clearing Union
- The IMF and the World Bank
- capital movements, speculation and currency crises
- monetary policy, financial operators, banks and enterprises: some empirical evidence
- monetary policy, financial flows, and international trade: some empirical evidence
- the future of financial institutions: digital central bank currencies vs cryptocurrencies
- the future of financial institutions: sustainable finance in European agenda
The course combines traditional lectures with practical sessions during which the students will have the possibility to familiarize themselves with the techniques presented in the lectures (using appropriate econometrics software). Both traditional lectures and practical sessions aim at fostering participation and class discussion.
Collection of readings and case studies will be indicated during the course
The procedure and content of the exam will be the same for both attending and non-attending students. The final evaluation consists of:
- One (long) Applied assignments (50% of the final grade). The purpose of this task is two-fold: 1) developing practical skills, 2) offering the students the opportunity to apply their knowledge to real data. Students may work in small group or individually. In any case, every student has to hand in his/her own solution.
- Final written exam (50% of the final grade)
A particular attention will be devoted to sustainable finance intended as the process of taking environmental, social and governance (ESG) considerations into account when making investment decisions in the financial sector, leading to more long-term investments in sustainable economic activities and projects.