Instructional goals
The course aims to combine fundamental knowledge related to the understanding of different macroeconomic phenomena with their application in business contexts, particularly for planning activities.
The course also seeks to provide students with a critical perspective on the discipline, encouraging reflection on the interrelationships between business decisions and macroeconomic issues in different economic contexts, vis-à-vis economic policy decisions.
An in-depth analysis of institutional publications from the Bank of Italy, together with professional testimonials from the industrial sector, will represent important components of the course activities, helping students understand the real implications of the use of key macroeconomic variables on business dynamics.
Prerequisites
Principles of Microeconomics and Macroeconomics
Intended learning outcomes
Knowledge and Understanding:
Understanding of the main macroeconomic variables, their causal relationships, and the role of the key institutions involved in economic policy decisions.
Applying Knowledge and Understanding:
Students will be able to critically analyze an institutional economic publication and contribute effectively to business planning processes.
Communication Skills:
Students will be able to present their reasoning rigorously on the topics covered during the course.
Course Contents
The course covers topics such as aggregate demand, inflation, unemployment, money, fiscal policy, and monetary policy, also from the perspective of providing inputs for business planning decisions.
Reference Books
Macroeconomia. Una prospettiva europea. O. Blanchard et al. Ultima edizione
Teaching Methods
The course includes traditional lectures, as well as interviews and guest talks by experts in class. The course requires active student participation in lectures and in the group work activities that will be organized.
Assessment Method
Attending student
Student assessment will be structured as follows:
1. Individual final written exam (60% of the final grade);
2. Class participation and discussion of the Project Work (20%);
3. Presentation of the Project Work (20%).
The written exam consists of a mix of true/false questions with justification, exercises, and multiple-choice questions. The number of questions for each type will be determined by the professor during the course and communicated to students before the exam. The procedures for completing the Project Work will be communicated by the professor during the first week of classes.
Non-attending student
Assessment is based on a single final exam covering the same syllabus as attending students, but longer and including the part of the program developed through the Project Work.
Thesis assignment criteria
Students who have passed the exam.
Week 1
Introduction to the course. Economic analysis: macroeconomics and economic policy.
Economic variables relevant to business planning.
Macroeconomia. Una prospettiva europea. O. Blanchard et al. Ultima edizione – Cap I e II
Readings assigned in class and provided by the professor.
Week 2
Macroeconomic foundations for short-term business planning.
Meet the professionals: budgeting, management control, and the economic variables considered by a medium-sized Italian industrial firm.
Macroeconomia. Una prospettiva europea. O. Blanchard et al. Ultima edizione – Cap III
Readings assigned in class and provided by the professor.
Week 3
Lessons learned and potential challenges for the company’s plans discussed in the previous session in light of the current economic and geopolitical context.
Macroeconomic foundations for medium- to long-term business planning.
Macroeconomia. Una prospettiva europea. O. Blanchard et al. Ultima edizione – Cap X
Readings assigned in class and provided by the professor.
Week 4
Meet the professionals: Strategic analysis tools and evaluation of the consistency between competitive positioning, pricing policies, and economic and financial performance in tourism companies, also in light of the main macroeconomic variables and their implications for demand dynamics and profitability.
Lessons learned and potential challenges for the companies’ plans discussed in the previous session in light of the current economic and geopolitical context.
Assignment of the Project Work.
Readings assigned in class and provided by the professor.
Week 5
GDP, inflation, and employment.
GDP, inflation, and employment: interrelationships and reference points for projections useful for business planning.
Macroeconomia. Una prospettiva europea. O. Blanchard et al. Ultima edizione – Cap I, II, VIII.
Readings assigned in class and provided by the professor.
Week 6
Aggregate demand: consumption, investment, and government;
Aggregate demand: consumption, investment, and government; interrelationships and reference points for projections useful for business planning.
Macroeconomia. Una prospettiva europea. O. Blanchard et al. Ultima edizione – Cap III, V, XXII.
Readings assigned in class and provided by the professor.
Week 7
Money and interest rates.
Money and interest rates: interrelationships and reference points for projections useful for business planning.
Macroeconomia. Una prospettiva europea. O. Blanchard et al. Ultima edizione – Cap IV, V, VI.
Readings assigned in class and provided by the professor.
Week 8
The yield curve. Focus: the case of Italian government bonds.
Central banks and monetary policy.
Macroeconomia. Una prospettiva europea. O. Blanchard et al. Ultima edizione – Cap XXII.
Readings assigned in class and provided by the professor.
Week 9
Meet the professionals: trends and outlook for the Italian economy, framed within the broader international context and the euro area, focusing on its most relevant aspects: the real economy, public finances, banking activity, and financial markets – Bank of Italy Economic Bulletin.
Lessons learned and potential applications of macroeconomic outlooks to corporate plans discussed in previous sessions.
Readings assigned in class and provided by the professor.
Week 10
Exchange rates and the application of barriers to international trade.
Meet the professionals: conditions of the financial system, framed within the global macroeconomic and financial context, and the main risk factors of domestic and international origin – Bank of Italy Financial Stability Report.
Macroeconomia. Una prospettiva europea. O. Blanchard et al. Ultima edizione – Cap XIX, XX.
Readings assigned in class and provided by the professor.
Week 11
Monetary policy and banking and financial supervision in the European context.
Meet the professionals: business planning of a joint venture between an industrial company and a financial intermediary.
Readings assigned in class and provided by the professor.
Week 12
Discussion of Project Work group assignments and course closure.