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

Knowledge and understanding: Students can understand the causal links among the main macroeconomic variables, know why the business cycle occurs. Moreover, they understand the macroeconomic effects of both countercyclical and structural economic policy interventions. Applying knowledge and understanding: Students are 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 able to critically analyze the effect of different shocks on both the domestic and 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 macroeconomic topics. Personal development skills: - Self-management - Problem solving - Application of numeracy skills

Introduction- Defining the macroeconomics variables. The Short Run and the Medium Run. PART I -The Short Run: The goods market, the financial markets and the IS-LM model. Fiscal and monetary policies in the short run. PART II – The Medium Run: The labor market and the natural unemployment rate. The IS-LM-PC model. Fiscal and monetary policies in the medium run Financial Markets and expectations. PART IV: The open economy: The interest rate parity. The IS-LM in open economy.

All course materials are available via Moodle, but this can be supplemented with additional background reading. The recommended textbook is: Blanchard, O. Giavazzi F & Ameghini A., Macroeconomics: A European Perspective 4/E, Pearson, 2021

Teaching is based on lectures and practice sessions in which written exercises will be solved and discussed with the students. Students are expected to make positive contributions to class discussions and during the lectures.

Evaluation through two written exams: 1. Midterm exam: with a weight of 40%. 2. Final written exam: to be held at the end of the course, exclusively during the December session, with a weight of 60%. As an alternative to the two written exams, it is possible to take a single written exam starting from the December session. The written test consists of a mix of multiple-choice questions and exercises, with which the students have to demonstrate knowledge of the theoretical notions of teaching, knowing how to apply them in practical cases demonstrating that he has achieved the method of study and the learning ability necessary to continue the study of the subject autonomously. Failure to achieve at least the score of 18/30 will result in failure to pass the exam. 30/30 cum laude requires to obtain the maximum grade.

Interview with the lecturer, interest in the subject