SCENARI MACROECONOMICI INTERNAZIONALI
Instructional goals
The course aims to develop the tools and issues addressed during a basic Macroeconomics course in an international perspective.
Intended learning outcomes
The course aims to provide the key conceptual tools to analyze 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.
Course Contents
The teaching is divided into six themes, each of which is in turn divided into two parts. In the first part, some national and international macroeconomic scenarios are presented through the study of theoretical models; in the second part, some case studies relating to historical events that occurred in the last century in Western economies are explored in depth, trying to provide an interpretation through the application of the theoretical categories studied in the first part.
First topic. The IS-IT model in the short-run
Second topic. Dynamics of public debt
Third Second topic. IS-IT-AS in the medium-long run
Fourth topic. Balance of payments and foreign exchange market
Fifth topic. IS-IT model under flexible exchange rate regime
Sixth topic. IS-IT model under fixed exchange rate regime
Reference Books
Basic texts
Mauro Visaggio
Macroeconomia. Teorie e politiche macroeconomiche in una economia globale integrata, McGraw-Hill, 2023
Mauro Visaggio, "Le Grandi Fasi economiche tra cigni neri e cigni grigi", McGraw-Hill, 2024
Teaching Methods
Lectures, discussion of case studies and presentation of applied works.
Assessment Method
Thesis assignment criteria
The supervision of the thesis is subject to passing the exam. There is no restriction on the mark obtained in the exam.
Week 1
Topic 1. IS-IT model in the short-run
Theoretical contents
The first topic presents a short-term macroeconomic model in which Central Banks control the real interest rate and in which, therefore, it is possible to study:
(1) the effects of recent unconventional monetary policies.
(2) the potential trade-offs between business cycle stabilization and public debt stabilization in a closed economy.
Week 2
See week 1
Week 3
Topic 2. Public debt dynamics
Theoretical contents
The second theme deals with two topics:
(1) the arithmetic of public debt;
(2) the conditions of its ustainability
of fiscal adjustments in Italy in the 1990s
Week 4
See week 3
Week 5
Topic 3. IS-IT-AS model in the medium-long run
The IS-IT-AS model considers the labor market and an economy characterized by three imperfections: imperfect competition in the goods and labor markets; imperfect information which implies a forecast error in the formation of the expected price by the workers' union. The information imperfection boots an intrinsic dynamic to the model: it becomes necessary to examine the medium-long term. Two questions are explored in depth:
1. effects of negative shocks on the supply and demand side;
2. interaction between the endogenous adjustment mechanism based on the correction of expectations and the type of interventions implemented by macroeconomic policy makers.
Week 6
See week 5
Week 7
Topic 4. Balance of payments and foreign exchange market
Theoretical contents
The fourth theme presents the basics of an open economy: balance of payments, foreign exchange market, definition of exchange rates and equilibrium condition of foreign exchange market.
Week 8
See week 7
Week 9
Topic 5. IS-IT model under a flexible exchange rate
Theoretical contents
The fifth theme considers an open economy model in a regime of flexible exchange rates and in which the Central Bank controls the interest rate. In addition, the role and effects of macroeconomic policies within an optimal currency area are analyzed.
Week 10
See week 9
Week 11
Topic 6. IS-IT model under a fixed exchange-rate regime
Theoretical contents
The sixth theme considers a model of an open economy under fixed exchange rates in cases of no capital mobility and perfect capital mobility.
Week 12
Case studies discussed during the first 11 weeks:
1. La Grande Depressione: 1929-1936
2. La Grande Crescita:1945-1972
3. La Grande Inflazione:1973-1980
4. La grand Moderazione: 1981-2007
5. La Grande Recessione: 2008-2019
6. La Grande Incertezza Globale: 2020-2024