Prof. Andrea Terzi; Prof. Giacomo Vaciago

Monetary Economics

Prof. Andrea Terzi; Prof. Giacomo Vaciago

COURSE AIMS

The course introduces the student to an understanding of the role of monetary variables in a modern market economy. The course studies the value of money, the reasons for monetary demand, the means of monetary supply, and the monetary-policy functions of central banks. The course thus presents a very broad-based context for financial analysis and the very significant current problems in relation to the stability and efficiency of the financial markets. Finally, the course examines the role of the monetary authorities from the standpoint of the relationship between tools and objectives.

COURSE CONTENT

1. Money.

2. Monetary demand.

3. The IS-LM model.

4. Yield curve by maturity.

5. Central banks.

6. Monetary policy theory.

7. Monetary policy strategy.

8. Comparison between ECB and Fed.

READING LIST

G.B. Pittaluga, Economia Monetaria: Moneta, Inflazione, Istituzioni, Milan, Hoepli, Third edition, 2007 [Chapters: 1, 2 (excluding 2.6, 2.7, 2.8, 2.9, 2.10, 2.11 and appendix), 4 (excluding 4.6, 4.7, 4.8, 4.9 and appendices), 5 (excluding appendix), 6 (excluding 6.7, 6.8, 6.9 and appendix 6.2), 8, 9 (excluding the three appendices), 10].

A. Terzi, La Moneta, Bologna, Il Mulino, 2002, e-book.

C.A.E. Goodhart, The two concepts of money: Implications for the analysis of optimal currency areas, ‘European Journal of Political Economy’, Vol. 14, 1998 (pages 407–432).

European Central Bank, ECB's liquidity management, Monthly bulletin, May 2002 (pages 43-55).

T. Keister-A. Martin-J.J. McAndrews, Divorcing Money from Monetary Policy, Federal Reserve Bank of New York, Economic Policy Rewiew, Settembre, vol. 14 (2), 41-56.

A. Terzi, La Moneta, Il Mulino, Bologna, 2002, edizione e-book (facoltativo).

Further study

Students particularly interested (final grade higher than 26/30) are requested to investigate class arguments: further readings will be supplied.

TEACHING METHOD

Lectures supplemented by several assignments to be completed by experts in the field of study.

ASSESSMENT METHOD

Written test, and possible supplemental interview.

NOTES

Pre-requisite: Economics I.

Further information can be found on the lecturer's webpage at http://www2.unicatt.it/unicattolica/docenti/index.html, or on the Faculty notice board.