The course offers the analytical tools and the basic notions which represent the buidling blocks of the modern and simplest macroeconomic models. The crucial aim of the course is to enable students to understand and to interpret a number of important macroeconomic phenomena such as: the determination of the short-term and medium-term equilibria, the income and employment fluctuations, the working of financial markets, why money matters, the cause and consequences of inflation, the impact of international trade and international monetary system on the domestic economic variables, the causes of structural unemployment, the role of economic policy. An additional aim of the course is to offer to the students a methodology to face the economic problems by means of a systematic and coherent reasoning.

Knowledge and understanding. The student will analyze the determinants of short-term economic system performance. In particular, the main definitions of national accounting will be provided to identify the most important economic indicators of a country. The short-term macroeconomic model (IS/LM) will be derived, along with the policy implications that can be drawn from these models. The student will then analyze the transition from the short to the medium/long term, introducing price variability and examining the different policy implications. Okun's Law and the Phillips curve will also be discussed, along with their policy considerations. Application of knowledge and understanding. Through references to current economic issues, the student should be able to interpret the effects of cyclical policies proposed by governments and central banks. The student should be capable of interpreting demand and supply shocks in the medium term. The learner should acquire the ability to explain phenomena such as the inflation rate and judge the adequacy of anti-inflation policies. The student should interpret the effects of policies on major financial activities. Autonomy of judgment. The student should be able to critically analyze economic information provided by the main media outlets, particularly regarding the causal relationships involving the most important macroeconomic variables. The course should provide a methodology that encourages systematic and coherent reasoning when addressing economic topics and considering data from official sources and the media. Communication skills. The student should acquire economic and financial terminology to avoid improper use of terms related to precise economic concepts. The learner should also gain mastery of economic terms typical of medium-term economic analysis, clearly distinguishing between supply and demand shocks, actual and natural GDP, etc. The student should become proficient in economic terms commonly used in the actions of central banks and fiscal authorities, such as inflation rate, unemployment, anti-inflationary policies, exchange rate, etc. Learning ability. The student should demonstrate understanding of the main dynamics of the short term economy. The student should be able to grasp the European debate on macroeconomic policies. The learner must be able to distinguish between the short and medium term and describe the effect of different economic policies (monetary, fiscal, or structural) in the medium term. The student should be able to explain the impact of disinflationary policies in light of the Phillips curve and Okun's law, which govern the dynamics of inflation rate, unemployment rate, and GDP growth rate. Finally, the student should acquire the ability to interpret information regarding currency and financial markets.

The main theoretical approaches to short and medium run economic fluctuations. The main factors affecting financial assets value.

Olivier Blanchard “Macroeconomia. Una Prospettiva Europea” a cura di , Alessia Amighini, Francesco Giavazzi, Il Mulino, 2010 o successive.

The course is structured in lessons. The latter will be focused on class exercises. These teaching activities have to be individually integrated by referring to the class material and the available videolecture on the web site (www.paolocanofari.it)

2 written exams: 1 Intermediate written exam (50%) 1 Final written exam at the end of the course (50%) As alternative a single written exam at the end of the course.

The supervision of the final dissertation requires that the candidate already overcame the exam with a positive mark. Moreover, the candidate must be enrolled in the third year courses of her/his curriculum.