Course 2010-2011 a.y.



Department of Economics

Course taught in English

Go to class group/s: 31
CLEAM (6 credits - II sem. - OP  |  SECS-P/01) - CLES (6 credits - II sem. - OP  |  SECS-P/01) - BIEM (6 credits - II sem. - OP  |  SECS-P/01)
Course Director:

Classes: 31 (II sem.)

Course Objectives


This course goes into more depth in the analysis of monetary theory and policy introduced in the basic course of macroeconomics. The main objective of the course is to allow students to understand the behavior of central banks and the effects of monetary policy on the economy. We first discuss the role of money in the economy, describing theories of money demand and money supply. We then study theory and empirical evidence related to the effects of monetary policy on the economy and its transmission mechanisms. Third, we describe the theory and practice of monetary policy and central banking. With this theory in mind, we then discuss and compare the design of monetary policy institutions and strategies at different central banks, such as the European Central Bank and the U.S. Federal Reserve. Finally, we discuss the causes of the recent financial crisis, its real effects and the response of monetary policy.

Course Content Summary


  • The role of money
  • Theories of money demand and supply
  • Transmission mechanism of monetary policy: theory and empirical evidence
  • The design of monetary policy
  • The conduct of monetary policy at the Fed and the ECB
  • Financial crisis and monetary policy

Detailed Description of Assessment Methods

Examination is through a written exam. Students may take the exam either as two partial exams or as one general exam at the end of the course. If taking the partial exams, students must obtain at least 18 out of 30 points in each exam, and the final grade is the average of the grades in the two exams.


The main reference textbook is F. Mishkin, The Economics of Money, Banking and Financial Markets, Addison Wesley, 9th edition. Additional readings are specified in the program. Of these, the required readings will be indicated during classes and will be available on the e-Learning area of the course.   PowerPoint slides used in class will also be available. The final program will be available at the beginning of the course.


Exam textbooks & Online Articles (check availability at the Library)
Last change 03/05/2010 17:00