The aim of the course is the introduction to macroeconomic analysis. The macroeconomic analysis studies the economic system as a whole and tries to interpret and predict aggregate variables such as the gross domestic product, the level of unemployment, inflation and exchange rates. We will learn how economists answer questions like: What determines economic growth, wealth and welfare in the long-run? Why are modern economies subject to cycles in which recessions are followed by expansions? What drives inflation and unemployment? What kinds of economic policies (monetary and/or fiscal) can be pursued in order to increase national income and reduce inflation and unemployment.

Knowledge and understanding: Students are expected to understand the causal links among the main macroeconomic variables, to know why the business cycle occurs and the determinants of the long run economic growth. Moreover, they understand the macro effects of both countercyclical and structural economic policy interventions. Applying knowledge and understanding: Students are expected to be able to: (1) apply macro models to formulate rigorous reasoning on different macro issues, (2) understand the content of articles and documents related to macroeconomic issues. Making judgments: Students are expected to be able to critically analyze the effect of different shocks on both the domestic economy and the global economy. They are also able to evaluate the role of the key economic actors and the effects of policy actions in different economic scenarios. Communication Skills: Students are able to (1) process data, documents and opinions on the most important macroeconomic issues (2) clearly present to an audience of peers their reasoning on a given macroeconomic issue as well as state the theoretical motivations underlying their conclusions. Learning skills: Classes, lecture notes, and articles allow students to undertake with autonomy more advanced courses of economics and to plan and conduct independently a small research project (e.g. an undergraduate dissertation) on macroeconomics topics.

Introduction - Defining the macroeconomics variables. The Short Run, the Medium Run and the Long Run PART I -The Long Run: Saving, capital accumulation and growth. The role of technological progress. PART II – The Short Run: The goods market, the financial markets and the IS-LM model. Fiscal and monetary policies in the short run. The open economy: The interest rate parity. The Mundell-Fleming model. PART III – The Medium Run: The labour market and the natural rate of unemployment. The IS-LM-PC model. Fiscal and monetary policies in the medium run

Mankiw N.G. and M.P. Taylor, Macroeconomics, European edition, Palgrave ed. 2014. The chapters of the book are supplemented by other reading selected by lecturers and made available on the course e-learning platform

Lectures and written exercises based on the problem set. The solutions of the problem set will be discussed in class.

The student evaluation will be structured as follows: 1. Ongoing evaluation (individual): up to 2 bonus points. These part intends to evaluate the understanding of the topics covered during the lessons. These evaluation gives up to 2 bonus points only to students who take the exam in the May-June session, on the basis of the individual preparation and of the course attendance, according to the following structure: 1.1 the (individual) submission of at least 2/3 of the Problem Sets that will be distributed during the semester. This is a necessary condition in order to use the bonus points earned with the intermediate test. 2. Evaluation at the end of the course (individual): up to 30 points. Final written exam. This test intends to test knowledge and understanding. The final exam will consist of a mix of open-ended questions, a multiple choice and exercises, through which the student will be able to demonstrate the knowledge of theoretical notions and how to apply them to practical cases. Students will also have to demonstrate the achievement of the methodology of study and the ability to learn, which is also necessary for an authonomous in-depth study of the subject. The number of questions of each of these types will be decided by the teacher during the course and communicated before the exam. In order to pass the exam, it is necessary that the student gets at least 18/30 in each of the aforementioned activity. The correct answer to all multiple choice questions, the demonstration of an excellent knowledge in open questions and the correct resolution of exercises leads to getting 30/30 with the possible awarding of cum laude.

To have attended classes and to be interested in the subject