MACROECONOMICS AND ECONOMIC POLICY

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.

Microeconomics, Mathematics

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.

1. Introduction to macreconomics, data definition, measurement and analysis. 2. Domestic Product, the production function, the market for inputs and the long-run equilibrium. 3. Money and Inflation 4. The Open Economy dimension 5. Economic Growth 6. Unemployment 7. Economic fluctuations, price stickiness, the aggregate demand and supply. 8. The IS-LM model and the effects of monetary and fiscal policy 9. The Open Economy in the short-run, the exchange-rate regimes. 10. Aggregate Supply 11. Public Debt

Mankiw, N.G., Macroeconomia, 2024, seventh edition, ed. Zanichelli

Lectures, practice sessions, discussions about current developments

The course includes periodic in-class exercises, useful for the preparation of written tests. The student's evaluation will be structured as follows: 1. Assessment in itinere (individual): up to 2 bonus points. Through these tests we intend to test the ability to understand the topics covered during the course of the lessons. The tests in itinere allow you to obtain up to a maximum of 2 (two) bonus points (only for students who take the exam in the May-June session), based on individual preparation and attendance of the course, as follows 1.1 Assessment of individual preparation: written, non-exempt midterm test consisting of a mix of multiple-choice questions. 1.2 Evaluation of attendance: the (individual) delivery of at least 2/3 of the Problem Sets that will be distributed during the semester is a necessary condition for the use of the bonus points earned with the midterm test. 2. End-of-course (individual) assessment: up to 30 points. Final Written Exam. This test is intended primarily to test knowledge and understanding. The final exam will be composed of a mix of open-ended and multiple-choice questions and exercises, with which the student will have to demonstrate that he/she knows the theoretical notions of the course, knows how to apply them to practical cases, demonstrating that he/she has achieved the study method and learning ability necessary to continue the study of the subject independently. The number of questions of each of these types will be decided by the teacher during the course and communicated to students before the exam. Failure to achieve a score of 18/30 will result in failure of the exam.

Active attendance and good performance (at least 27/30)