ECONOMIC POLICY I

This course is among those characterizing the Bachelor’s Degree programme in Economics and Management. The aim of the course is to provide an overview of main macroeconomic issues and tools. The course analyses models explaining the determinants of equilibria in goods and financial markets in closed and open economy. A particular attention is devoted to the temporal evolution of the equilibrium, distinguishing between short and medium run dynamics. The models analysed in the course will help understanding the effect of economic policies, such as fiscal policy and monetary policy, on three main macroeconomic variables: aggregate output, unemployment rate and inflation rate.

1. Knowledge and understanding:
1.1. Understand the interconnections between goods and financial markets.
1.2. Understand the determinants of short and medium run equilibrium in goods and financial markets in closed and open economy.
1.3. Understand the effect of fiscal and monetary policies in the short and in the medium run

2. Ability to apply knowledge:
2.1. Identify effects of economic policies on goods and financial markets
2.2. Apply macroeconomic models to understand which economic policy tools may be used to achieve specific goals set by governments or central banks in terms of output, unemployment rate and inflation.
2.3. Evaluate the differential impact of alternative economic policy instruments on the equilibrium in good and financial market.

3. Making judgements:
3.1. Evaluate the condition of a particular macroeconomic system and formulate hypothesis on its future evolution, based on analytical models.
3.2. Based on the models studied in the course, evaluate the efficacy of alternative economic policies on various macroeconomic objectives in the short and medium run.
3.3. Understand the current economic debate and critically assess the empirical relevance of the models studied.

Compulsory Prerequisites: http://www.unive.it/pag/14770/

Prerequisites: main learning outcomes of the Math course (first and second module) must be achieved (even if the exam has not been taken yet). In particular, students should be familiar with basic tools of analytic geometry and systems of equations.

The program for the course is as follows:

National accounts; price indexes and inflation rate
Goods market
Financial markets
IS-LM model
Extending the IS-LM model
Open economy and IS-LM model
Labour market
Phillips curve, natural rate of unemployment and inflation
From the short to the medium run: the IS-LM-PC model

O. Blanchard, A. Amighini e F. Giavazzi, Scoprire la macroeconomia 1. Quello che non si può non sapere, Il Mulino, Bologna, 2021
Additional material on specific topics will be made available on Moodle.

The exam is in written form and lasts 60 minutes.During the test, the use of books, notes, phones, or any other electronic devices is prohibited, except for a calculator. It is not possible to take the exam in oral form.

written

The exam covers topics selected from those discussed during the course.

The exam is structured in two parts: the first consists of multiple-choice questions, with no penalties for incorrect answers; the second includes at least one exercise similar to those covered in the practice sessions, incorporating both theoretical analysis and numerical calculations.

The exam is considered passed if the total score obtained is at least 18/30.

The test assesses the degree of achievement of the expected learning outcomes, as described in the previous sections of this syllabus. Specifically, it evaluates the knowledge and understanding of the course content, as well as the ability to apply these concepts to define the equilibrium of a macroeconomic system and analyze the changes and implications resulting from the introduction of economic policies by governments and central banks.

a) Teachers’ frontal lectures;
b) Tutorials

The exercises presented during the tutorials and the topics discussed in teachers’ notes are part of the exam’s program.

Additional exercises can be found in this book: D. W. Findlay, Esercizi di Macroeconomia. Guida allo studio del testo di O. Blanchard, A. Amighini, F. Giavazzi, Il Mulino, Bologna, 2021.

The detailed programme for the exam and all the mandatory supplementary material will be made available during the course through the Moodle area accessible from the lecturer's web page.

Sustainability

This subject deals with topics related to the macro-area "Poverty and inequalities" and contributes to the achievement of one or more goals of U. N. Agenda for Sustainable Development.

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Ca' Foscari abides by Italian Law (Law 17/1999; Law 170/2010) regarding support services and accommodation available to students with disabilities. This includes students with mobility, visual, hearing and other disabilities (Law 17/1999), and specific learning impairments (Law 170/2010). If you have a disability or impairment that requires accommodations (i.e., alternate testing, readers, note takers or interpreters) please contact the Disability and Accessibility Offices in Student Services: disabilita@unive.it.

This subject deals with topics related to the macro-area "Poverty and inequalities" and contributes to the achievement of one or more goals of U. N. Agenda for Sustainable Development