MONETARY ECONOMICS

The course is part of the set of applied topics, which complete the knowledge and competences of an economist. It investigates money markets and monetary policies, which determine the economic outcomes, both in the financial sector and in the real economy, in a global context.
The knowledge of Monetary Economics and Finance is crucial for any future economist who intends to play a key role in firms or institutions, or for any specialization field in economics, as envisaged by the most popular master courses. The complexity of the money markets and financial markets, including monetary policies, makes it necessary a deep knowledge of institutions and of the technical tools, also quantitative, to analyze also the real effects of monetary variables.

Intended learning outcomes in terms of:
1. Knowledge
The course will provide the students with a comprehensive understanding of money and financial markets, demand and supply of money and financial instruments.
To gain insight of important fields such as monetary policies, price stability and financial crisis .
To learn about properties of different financial instruments .
To learn about the impact of monetary policy

2. Applied Skills
Students will become familiar with the concepts of money markets, financial markets and stock markets
Students will know how to read the appropriate related data in international publications (such as the European Central Bank, the OECD)
Students will know how money markets, financial and insurance markets operate and their effects

3. Critical thinking
Students will be required to discuss the pros and cons of the different financial market models also in relation to historical events (crisis)
Students will discuss the data on money markets and stock market
Students will know how to compare the different financial market policies and market regulation




After having learned what money is and what its functions are. At the end of the course you will be able to understand the main monetary policies, including "quantitative easing" (QE) and other economic stabilization maneuvers. You will become familiar with the subject which, besides being extremely current, is always evolving, both in the payment instruments and in the policies implemented by the Central Banks. In fact, you will be able to read and understand institutional policy reports and the economic effects of different monetary measures, as well as the reasons behind government decisions.
You will also be able to learn in depth the reasons for the recent economic crisis and the connections with past ones.

Economics (Microeconomics).
Macroeconomics is not mandatory but strongly recommended, as it allows a better understanding of the markets. However, the exam can be taken having passed the Microeconomics's exam.

PART I: INTRODUCTION
Why Study Money, Banking, and Financial Markets?
An Overview of the Financial System
What Is Money?
Why do we have saving?
PART II: FINANCIAL MARKETS (Introduction)
The Meaning and Behaviour of Interest Rates
The Risk and Term Structure of Interest Rates
Insurance markets
PART III: FINANCIAL INSTITUTIONS 
Financial Crises
PART IV: CENTRAL BANKING AND THE CONDUCT OF MONETARY POLICY  
Central Banks and the Federal Reserve System (ECB)
The Money Supply Process
Tools of Monetary Policy
Monetary Policy: Strategy and Tactics
PART VI: MONETARY THEORY 
Main theories of Quantity, Inflation, and the Demand for Money
The Monetary Policy and Aggregate Demand Curves
Aggregate Demand and Supply Analysis
Monetary Policy Theory
The Role of Expectations in Monetary Policy
Transmission Mechanisms of Monetary Policy

Other topics
1. Financial Crises in Emerging Market Economies
2. The ISLM Model
3. Nonbank Finance
4. Financial Derivatives
5. Conflicts of Interest in the Financial Services Industry

Money, Banking and Financial Markets, 6th Edition, Stephen Cecchetti and Kermit Schoenholtz


"Economics of Money, Banking and Financial Markets", 12th Edition By Frederic S. Mishkin (older editions could be used, check on moodle for more recent topics)

Written Test , possibly also homeworks. The exam will have a first part with short and quick questions and a second part with more complex questions

- lectures based on the professor's slides, plus group discussions on specific topics

English

Slides of the teacher available in the moodle platform of the course

written

This subject deals with topics related to the macro-area "Human capital, health, education" and contributes to the achievement of one or more goals of U. N. Agenda for Sustainable Development