MACROECONOMICS

This course aims to provide the methodological and theoretical tools to understand how the economies work and to explain the past and current economic developments. We will focus on the stylized facts of business cycle fluctuations and economic growth, the determinants of unemployment and inflation. We will also discuss whether and to what extent policy can improve macroeconomic performance.

Microeconomic Principles

Knowledge and understanding This course aims to provide the methodological and theoretical tools to understand how the economies work and to explain the past and current economic developments. We will focus on the stylized facts of business cycle fluctuations and economic growth, the determinants of unemployment and inflation. We will also discuss whether and to what extent policy can improve macroeconomic performance. Applying knowledge and understanding The students will be able to Apply a wide range of economic models to analyze contemporary and historical macroeconomic events, and propose appropriate macroeconomic policies Making judgements We expect students to be able to critically examine macroeconomic policies and use the appropriate economic models to critically demonstrate the scope and challenges of macroeconomic policies. Communication This course will give the students the possibility to acquire and understand major macroeconomic language and terminology in order to communicate their ideas, proposals, analysis and critical reasoning in the most effective and appropriate way with specialists and non-specialists. Lifelong learning skills This course will train the students to apply abstract thinking applied to complex economic system. This course will give students the tools to formulate and evaluate macroeconomic policy.

Part I: Introduction to Macroeconomics; The Big Questions; The story of macroeconomics Good Markets Financial markets IS-LM model Openness in Goods and Financial Market Budget Deficits Part II: The Labour Market IS-LM-PC Model

Blanchard, O. Giavazzi F. & Amighini A., Macroeconomics: A European perspective. Pearson, 4th Edition.

Lectures and written exercises based on the problem set which will be made available few days before the class. The solutions of the problem set will be made available on the Luiss learn platform

Written exams; problem sets handed in during the course. The exam is based on the topics covered during the lectures and classes, the chapters of the textbook and on selected supplementary readings assigned during the course.

Interview with the lecturer, interest in the subject