Monetary Policy
CORSO DI STUDIO: Corso di Laurea Magistrale in Banca e Finanza
a.a. 2015/2016
Denominazione insegnamento/Course Title
Monetary Policy
Politica monetaria
Lingua dell’insegnamento: Inglese
Crediti e ore di lezione: 6 CFU, 48 ore di lezione
Moduli: NO
Settore/i scientifico disciplinare: SECS-P/02
Docente: Clara Graziano
Indirizzo email: clara.graziano@uniud.it
Pagina web personale: http://www.dies.uniud.it/index.php/graziano.html
Prerequisiti e propedeuticità/Requirements
Students are supposed to have an good knowledge of basic tools of macroeconomics, the IS-LM model and the aggregate demand and aggregate supply model. There is no specific compulsory requirement in addition to those required to enroll to the Laurea Magistrale.
Conoscenze e abilità da acquisire/Knowledge and skills
The course aims at providing students with a thorough knowledge of the theoretical models used to study monetary phenomena, a good understanding of the monetary policies as well as recent practical problems of monetary policy action in the euro area and in other Countries.
Kwoledge and skills specific to the course
After completing the course students will be able to:
- identify functions of money,
- understand the relationship between money and interest rates;
- understand the importance of financial markets and financial institutions , and the role of central banks and their conduct in the recent financial crisis;
- explain the advantages and disadvantages of various conduct of monetary policy.
- develop the ability to distinguish the different approaches and conclusions proposed by different schools of thought.
Soft skills
The course aims at contributing to the development of the following soft skills:
Ability of making judgements: students will be able to analyze, through the use of the appropriate tools, the key issues of monetary policy.
Communication skills: the ability to rigorously analyze key topics should be accompanied by the ability of students to communicate their arguments in a competent manner.
Learning skills: the course will focus both on theoretical models and on policy issues with particular attention to issues relevant for the euro area.
Programma e contenuti dell'insegnamento/Course description
The issues to be addressed include: Demand for money, optimal inflation rate, the adoption of rules versus discretion in the conduct of monetary policy, interaction between fiscal and monetary policy, transmission of monetary policy, financial crisis, monetary policy in a currency union and the role of central banks. Particular attention is devoted to the monetary policy of the EURO area and the role and organization of the European Central Bank.
We also discuss the implications of underlying frictions - such as private information, limited contract enforcement and limited market participation - for the allocation and rationale for policy interventions.
The detailed syllabus and the specific references will be made available online on the course web site at the beginning of the course.
Attività di apprendimento e metodi didattici previsti/Teaching and Learning activities
The course is organized in a series of lectures combined with paper presentation by the students intended to verify if students are able to apply the theoretical model studied to the analysis of relevant policy question. Given the relatively small number of students attending the course, discussion of current policy issues is encouraged.
Modalità di verifica dell'apprendimento/Examination
The evaluation of students will be made on the basis of: class participation, paper presentation (optional) and their performance in a final written exam. Students are invited to present a paper on a topic agreed upon at the beginning of the course.
Testi / Bibliografia/Bibliography
The reference books for the course are:
- Mishkin, Frederik The Economics of Money, Banking and Financial Markets, European edition, Pearson 2013.
- De Grauwe, Paul Economics of the Monetary Union, Oxford University Press 2009.
Additional articles covered during the course are:
- Yermack, D. “Is BITCOIN a real currency ? An economic appraisal” NBER Working Paper N. 19747, available at http://www.nber.org/papers/w19747
- Estrella and Mishkin (1996) The Yield Curve as a Predictor of U.S. Recessions, Current Issues in Economics and Finance, Federal Reserve Bank New York, vol 2 issue 7.
- Dotsey, M. “Monetary Policy in a Liquidity Trap”, paper available at www.philadelphiafed.org/research-and-data/publications
- Mishkin, F. “Monetary Policy Strategy: Lessons from the Crisis”.
Another useful reference is:
- Freixes and Rochet, Microeconomics of Banking, MIT Press
Other references may be provided during the course.
Strumenti a supporto della didattica/Further readings and support material
On web site of the course students will find: i) the slides related to the topics covered in class ; ii) most of the articles covered in class.
Tesi di laurea/Thesis
Topics suitable for the preparation of the thesis should be agreed upon taking into account the specific interests of both students and professor.