This course aims to inquiry how the economy works, by studying its main aggregate variables: GNP, or Gross National Product, value added, incomes, aggregate consumption, investment, taxes and public expenditure, labour participation, rate of (un)employment, general level of prices, as well as quantity of money and rate of interest.
These variables will be investigated using formal theories and empirical analysis, the latter based on World Bank data. They will refer to three main markets.
First, the market of goods, that will be studied both from the demand and the supply side.
Second, the monetary and financial market, with particular attention to the forces behind the determination of the rate of interest.
Third, the labour market, by focusing on the causes of the rate of unemployment and on the relation between full employment and prices.
The time frame of such an investigation will both refer to both the short and long run, with a stress on the interdependence between the various described markets, and the role of the state with its policy in correcting their pitfalls.
The main macroeconomic theories will be presented with a mix of descriptive, Cartesian and formal mathematical language. Some effort will be devoted to methodological issues. In particular with reference to a) the history of economic thought, so to better assess the origins (and limits) of present macroeconomic theories; and to b) the different approach in studying reality, between natural sciences (such as physics) and social sciences (such as economics).
At the end of course, students should be able to employ the analytical tools to inquiry macroeconomic issues. In particular on how the aggregate theories of demand and supply allow to understand and interpret the mechanisms and the evolution of economic systems. Students are trained to collect and process statistical data, coming from international organizations, so they can picture out the actual economic conditions of various countries. They will be able to do that, both by using cross-section and time series data. Finally, students should be able to assess the impact on the economy, in the attempt to improve it, of the various interventions of economic policy made by fiscal and monetary authorities.
1. Natural and Social sciences: Macroeconomics in the History of Economic Thought
2. National Accounts and empirical macroeconomic evidence
3. The market of goods
4. The financial and monetary market
5. The IS-LM model
6. Macroeconomics and Economic Policy
7. Economic growth
8. The accumulation of capital and the instability of capitalism
9. The labour market
10. The AD-AS equilibrium model and the relation Unemployment-inflation
11. The open economy (in short)
12. The role of expectations (in short)
Blanchard O., Amighini A., Giavazzi F., Macroeconomia, Il Mulino, 2014 or 2011. Part II, III, IV in full. Part V e VI in brief. There is a new edition 2016, which is not yet combined with its own exercise book. Students that follow the course will get access to notes, exercises and further reading list in preparation of the exam.
Findlay D.W. Esercizi di Macroeconomia. Guida allo studio del testo di Olivier Blanchard, Il Mulino, 2011 or 2015 (for Blanchard edition 2014).
There is also a short-cut version of the textbook: Blanchard O. Scoprire la macroeconmia, Il Mulino, 2011.
|Findlay, David W||Esercizi di Macroeconomia. Guida allo studio del testo di Olivier Blanchard, Alessia Amighini, Francesco Giavazzi||Il Mulino||2017||9788815272003|
|OLIVIER BLANCHARD, ALESSIA AMIGHINI, FRANCESCO GIAVAZZI||Macroeconomia. Una prospettiva europea||Il Mulino||2016||978-88-15-26571-5|
Final examination: Written exam with multiple-choice test and mathematical exercises. It will be followed by a short oral examination. The latter becomes an option for those students that follow the lectures and hand in the assignments given weekly during the course. In this case the student gains a bonus of a maximum of 10% of the mark of the final examination.