MONETARY ECONOMICS AND CREDIT

Understanding of the main relationships between money, credit, and the economic and financial system. Knowledge of the institutional and operational mechanisms of monetary policy and the supply of public and private money.

Microeconomics and Macroeconomics, Statistics and Mathematics.

Knowledge and understanding Students at the end of the Course will have proved their understanding of the main rationales for the existence of the money in economic systems, the determinants of money demand, the criteria that determine the action of central banks, the main topics of the relationship between monetary policy and financial intermediation, monetary creation by commercial banks, the impact of monetary policy on the real economy according to the different transmission channels. The acquired information set is a fundamental support for the understanding and deepening of the studies of all higher-ranking economic and financial subjects. Applying knowledge and understanding Students, through the knowledge acquired, will be able to: 1) analyze central bank decisions; 2) assess their consequences on governments, households, firms, and financial intermediaries; 3) understand macroeconomics and the financial system in light of the real relationship between credit and money: it is bank lending that creates deposits — and not the other way around — and the so-called "money multiplier" is, at best, an accounting identity, not a causal law; 4) operate in professional contexts connected to monetary and financial phenomena. Making judgements Students will be able to critically and independently assess monetary policy decisions and their macroeconomic and financial consequences, integrating the knowledge acquired even in the presence of incomplete information or unprecedented scenarios. They will also be able to compare and select the theoretical models best suited to the analysis of specific monetary phenomena, recognizing their interpretive limitations — including the case of the so-called money multiplier. Finally, they will be able to critically read the technical literature and institutional documents (ECB, Fed, BIS) relevant to the field. Communication skills Students will be able to communicate clearly and with appropriate technical language the content, analyses, and conclusions relating to the monetary and financial phenomena covered in the course, addressing both specialist interlocutors — through reference to the scientific literature and institutional documents — and a non-specialist audience, translating complex technical concepts into accessible and rigorous arguments. Learning skills By the end of the course, students will have developed the methodological and conceptual foundations to independently deepen their understanding of monetary economics and monetary policy, including through direct reading of the scientific literature and documents produced by the main international institutions (ECB, Fed, BIS, IMF). The course also provides a solid preparation for approaching master's degree programmes in economics and international finance with critical autonomy, as well as for independently following the evolution of the academic and institutional debate on money and financial markets.

The course investigates the functions of money, demand for and supply of money/credit, the role played by financial intermediaries, and monetary policy management and transmission in modern economies, with emphasis on comparing the FED and the ECB.

Di Giorgio G., Economia e politica monetaria, Wolters Kluwer, Milano, 7th edition. Di Giorgio G., A. Pandimiglio e S. Nisticò, Problemi di Economia e Politica Monetaria, Cedam, Padova. Teacher’s notes. Articles recommended by the teacher.

Lectures, practical classes, discussions, reading materials.

The student's evaluation will be structured as follows: - Intermediate written exam. It is intended to test mainly the knowledge and understanding of the topics concerning the demand for money. The test determines the final grade in proportion to the program covered (about 50%). - Final written test. It is intended to test the knowledge and understanding of the entire program. Failure to achieve a score of 18/30 will result in failure to pass the exam. Excellent answers to all questions will result in the award of honors.

Interest in the subject, demonstrated through the grade obtained in the midterm exam and class participation, and an academic background consistent with further study in economics and finance.