Course 2017-2018 a.y.

Classes: 31 (II sem.)

Instructors:
Class 31: DONATO MASCIANDARO

By the early ‘2000, an increasing number of countries had adopted a well-defined central bank framework, which is characterized by two intertwined features: the authority becomes specialized in achieving the monetary policy goals and consequently its traditional responsibilities in pursuing the financial stability are less important in its institutional perimeter. But then, after the Great Crisis erupted in 2008, reforms are undertaken and projects are under discussion in order to reconsider the central bank role. The depth and breadth of the crisis motivate an overall reconsideration of the relationships between monetary policy on the one hand, and prudential regulation and supervision on the other, with specific attention to Europe and US.
The course is devoted to a better understanding of the drivers of the policy choices, mixing traditional economics and new political economy.

• Macroeconomics and Central Banking.
• Price Flexibility and Rules: Central Bank, Money and Banking Stability.
• Price Rigidity and Active Policies: Central Bank, Monetary Policy and Financial Repression.
• Price Flexibility and Rule Flexibility: Central Bank, Independence, Monetary Stability and Prudential Policy.
• Crisis and Post Crisis.

Written General Exam. The exam texts are the same for all the students, including those who attended the course in the previous years.
The questions of the exam are four and compulsory (time=100 minutes). The grade of each question is 7.50/30; to pass the exam the overall grade has to be at least 18/30.
Mock exam questions are discussed during the course.

• Slides and readings represent the teaching material. The class slides are posted week by week on the website of the course. All the class slides and readings are compulsory exam material and have to be carefully prepared for the exam independently from the time allocated to them in class. Regular attendance is crucial for not falling behind. If the students miss the class, it is their responsibility to make up for the lecture notes and announcements made in class.
  
• S. EIJFFINGER, D. MASCIANDARO (eds.), Modern Monetary Policy and Central Bank Governance, Edward Elgar.