PRINCIPLES OF ECONOMICS II (MACROECONOMICS)
ACADEMIC YEAR: 2014/2015
YEAR OF STUDY: 2
SEMESTER: First semester
NUMBER OF CREDITS: 10
CONTACT HOURS: 70
INDIVIDUAL WORK HOURS: 180
Knowledge and understanding
The student learns how economic systems work and how they evolve across time.
The aim is to provide the tools required to analyze and understand:
•The determinants of growth and decline of the main macroeconomic variables.
•The way these variables interact within an economy
•The effects of international trade on the economy
•The way the government and the central bank can affect the main macroeconomic varibles to pursue the aim of increasing economic welfare
• History and functioning of Euro.
Applying knowledge and understanding
• Obtaining the required tools to describe the equilibrium of simple macroeconomic models.
• Obtaining the required tools to understand and elaborate the main economic statistics.
• Obtaining the required tools to assess the impact of economic policies in the short, in the medium and in the long run
• Developing the necessary skills to assess the results of macroeconomic studies and of economic policies
• Developing the necessary skills to explain critically the results of economic studies and the scenarios described by economic statistics both to expert and non-expert people in the field of economics
• Developing the necessary skills to explain briefly complex issues by means of charts and analytical formulae.
The Macroeconomics course provides a rigorous and critical description of an aggregate economic system and it focuses on the topics listed below.
1) Short run equilibrium
b) Money Market
2) Economic Policy in the short run
3) Medium run equilibrium
a) Labour market
b) AD-AS mode
c) Phillips curve
4) Long run equilbrium. Solow model
5) Open economy
6) Euro and European Union
7) The debt crisis
• O. Blanchard, Scoprire la Macroeconomia,volume 1, Quello che non si può non sapere,Il Mulino, edizione 2011.
• O. Blanchard, Scoprire la Macroeconomia, volume 2, Un passo in più, Il Mulino, 2003, capitolo 13.
• M. Menegatti, Applicazioni di macroeconomia, Giappichelli, 2012.
During the course the basic notions about macroeconomics are provided and the main theories which describe the functioning of economic system are discussed by means of lectures. These are flanked by tutorials where numerical examples are proposed to the students which represent a simplified description of the main theoretical models, with the aim to give the students the opportunity to solve some of the typical problem in macroeconomics such as the determination of the equilibrium of an economy and the definitions of the effects of economic policies on it.
Knowledge and learning ability will be tested in 10 short answer questions. The skills in applying knowledge will be tested through a numerical exercise. Judgement and learning abilities will be tested with a specific question which requires a wide and in depth argumentation. The ability to properly communicate by mean of technical idioms will be evaluated through the analysis of the language used to answer this question. Each part (10 short answer questions, numerical exercise and open-ended question) determines 1/3 of the final grade