Course 2017-2018 a.y.

30172 - FINANCIAL MACROECONOMICS


CLEAM - CLEF - CLEACC - BESS-CLES - WBB - BIEF - BIEM - BIG

Department of Economics

Course taught in English

Go to class group/s: 31
CLEAM (6 credits - I sem. - OP  |  SECS-P/01) - CLEF (6 credits - I sem. - OP  |  SECS-P/01) - CLEACC (6 credits - I sem. - OP  |  SECS-P/01) - BESS-CLES (6 credits - I sem. - OP  |  SECS-P/01) - WBB (6 credits - I sem. - OP  |  SECS-P/01) - BIEF (6 credits - I sem. - OP  |  SECS-P/01) - BIEM (6 credits - I sem. - OP  |  SECS-P/01) - BIG (6 credits - I sem. - OP  |  SECS-P/01)
Course Director:
LUIGI IOVINO

Classes: 31 (I sem.)
Instructors:
Class 31: LUIGI IOVINO



Course Objectives

The key lesson that economists have learnt from the recent crisis is how fundamental are the interactions between finance and macroeconomics. This course is motivated by the need to integrate macroeconomics and finance. The course emphasizes the importance of credit market imperfections for aggregate economic activity and the conduct of monetary policy. Recent unconventional monetary and fiscal policies implemented in response to the crisis are discussed in detail.

Course Content Summary

  • The global financial crisis: causes and implications.
  • Shadow banking, leverage, and the financial crisis of 2008-09.
  • Financial panic and bank runs: the model of Diamond and Dybvig.
  • Liquidity trap: the model of Krugman.
  • Monetary policy and fiscal policy. Conventional and unconventional monetary policy.
  • From the financial sector to the real economy: a model of borrowing constraints.
  • Financial crisis vs currency crisis vs sovereign debt crisis: an international perspective.

Detailed Description of Assessment Methods

Written Exam.

Textbooks

  • C. Walsh, Monetary Theory and Policy, MIT Press, 3rd edition, chapter 7.
  • X. Freixas, J.C. Rochet, Microeconomics of Banking, MIT Press, 2nd edition, chapter 4, 5, 6.
  • Handouts and slides are made available.
Exam textbooks & Online Articles (check availability at the Library)
Last change 10/05/2017 14:28