Those required by the degree programme.
At the end the of course students are expected to have a deeper knowledge of the determinants of the economic cycle and applications of current macroeconomic policies in open economies. More in particular, students are expected to be able to understand and discuss theories and empirical evidence about the fundamental determinants of the main macroeconomic variables, the evolution of the both fiscal and monetary policies in the current macroeconomic setting, and the role of the global financial interconnections in both advanced and developing open economies.
The first part of the course aims at building a unified analytical framework that can be used to rationalize the short-term fluctuations of the main macroeconomic aggregates and to assess the effects of fiscal and monetary policies:
- Microfoundations of the demand and supply sides.
- The 3-equation model in both closed and open economy.
- The role of expectations.
- The role of banking and financial sectors.
- Macroeconomic policies (fiscal and monetary policies).
- Real business cycle and New Keynesian models.
The second part of the course focuses even more on open macroeconomics and discusses the role of net and gross international capital flows as well as the costs and benefits of financial integration:
- The global imbalances and the sustainability of the current-account.
- Intertemporal theory of current account.
- Uncertainty and the current account.
- The benefits and the risks associated to financial integration and liberalization (including a focus on the finance-growth nexus, and on the role of sudden stops).
Beyond studying theoretical models, the course will devote a particular emphasis on the related empirical evidences and the policy implications.
Final written exam, consisting of exercises and open-ended questions.
If the course is delivered online (totally or partially), changes may occur in the program and/or in the exam, in order to adapt the course to online teaching methods.