The course aims to develop the tools and issues addressed during a basic Macroeconomics course in an international perspective.

The course aims to provide the basic theoretical tools - through the use of a simplified language from the analytical point of view - in order to examine some historical case studies that allow future managers to understand, deal with, and possibly solve , any future international financial crises. In conclusion, the course foresees a combination between the unavoidable theoretical bases and the empirical knowledge constituted by the different historical case studies examined.

The course is divided into six topics. The first topic presents, in the first part, the basic notions of macroeconomics in an open economy: the main accounting identities in an open economy; nominal exchange rate and real exchange rate; the condition of uncovered parity of interest rates; the foreign exchange market equilibrium; nominal interest rate and real interest rate; the determination of the risk premium on national government bonds and, finally, the Marshall-Lerner conditions. The second part of the first theme presents: the closed extended IS-LM model; the closed extended IS-LM-PC model; the open extended IS-LM-PC model. As part of the first theme, the case study (CS1) of the Covid-19 crisis and the contrasting macroeconomic policies implemented by the FED and the ECB are presented. In the second topic, through the study of the interaction between real and financial markets in an open economy, the theoretical foundations are laid for the examination and the implications of international openness in the implementation of contrast economic policies in order to achieve the full employment. The first part of the second topic examines the interaction of financial and real markets in a flexible exchange rate regime with particular emphasis on macroeconomic stabilization policies; the second part of the second topic examines the interaction of financial and real markets in a regime of fixed exchange rates. The second theme presents two case studies: the case study (CS2) of the twenty years lost in Japan and the case study (CS3) of the 1992 currency crisis in Italy. The third topic, after examining the role of financial institutions, addresses the theoretical aspects behind the origin of financial crises and the different stages through which the latter evolve. The third theme presents two case studies: the case study (CS4) of the Great Depression of the 1930s and the case study (CS5) of the 2007 financial crisis. The fourth topic deals with the role of Central Banks and, in particular, the differences between the Fed and the ECB with respect to the institutional set-up and the choice of objectives and tools. The theoretical foundations allow us to tackle two case studies: the case study (CS6) of the Inflation Targeting regime which allows to reconcile the independence of the Central Bank with the control of democratically elected governments over the Central Bank itself; the case study (CS7) of the comparison between the Fed and the ECB in the implementation of unconventional monetary policies following the 2008 financial crisis. The fifth topic deals with the question of the unsustainability of public debt and the problems associated with it following the financial crises and the adhesion to an optimal area with attention to the sovereign debt crisis following the 2008 financial crisis. As part of this topic, the case study (CS8) on the growth of public debt in Italy since the 1960s is presented. The sixth topic - starting from the theory of optimal areas - compares the advantages and disadvantages of joining the European Monetary Union by examining the growing problems emerging within the latter.

Blanchard O., Amighini A. and F. Giavazzi, [BAG], (2018), “Macroeconomics. An European perspective", sixth edition, Il Mulino. "International Managerial Macroeconomics", [MIM], (2019), M. Visaggio, Pearson-Text-Builder. Chapters from Krugman P., Obstfeld M. and M. Melitz (International Economics 2, International Monetary Economics (2019) and Mishkin F., Eakins S. and E. Beccalli, (2019), Financial Institutions and Markets. Lecture notes by the teacher on the various topics covered.

Lectures, exercises and discussion of the case studies examined.

Written exam (there is no oral exam). The structure of the written test is structured as follows: eight multiple choice questions (1 point correct answer; 0 points no answer; -0.25 point in case of wrong answer). three open questions (max. 8 points).

The supervision of the thesis is subject to passing the exam. There is no restriction on the mark obtained in the exam.

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