International macroeconomics

A.A. 2021/2022
Crediti massimi
Ore totali
Obiettivi formativi
The aim of the course is to provide the knowledge of how an economy functions in a globally integrated world. To this end, the course presents key concepts, relations, and models to understand the functioning of the market for goods and services, international financial markets and the labor market, especially with regard to the determination of output, employment, inflation and the exchange rate. The focus is on the role of fiscal and monetary policy and on the challenges of financial integration.
The main topics addressed are: (i) output and employment determination in an open economy; (ii) inflation dynamics and cyclical output fluctuations; (iii) exchange rate determination; iv) debt sustainability; v) monetary and fiscal stabilization policy.
Risultati apprendimento attesi
Students are expected to learn the basic principles of International Macroeconomics. Competence is developed regarding: i) the functioning of the market for goods and services and financial markets; ii) the sources of output fluctuations; iii) exchange rate determination and exchange rate regimes; iv) the effects of financial integration; v) the instruments and objectives of monetary and fiscal policy. Students are expected to develop the basic skills for macroeconomic analysis with special attention to the interpretation of data and information, and the analysis of policy issues and their solutions.
Programma e organizzazione didattica

Edizione unica

Secondo trimestre
Lectures will be given online in synchronous way on the Zoom platforms according to the timetable provided by the university. Lectures will be recorded and made available to the students to be followed in an asynchronous way. Power point presentations of the lecture contents (slides) will also be available on the course webpage on

The program of the course will remain unchanged.

In case of remote examination an oral exam may be given.
The course offers an introduction to the most important topics in macroeconomics, from the functioning of the economic system in a globally integrated world to the role of fiscal and monetary policy. The analysis shows how the goods market and financial markets determine output, employment, inflation and the exchange rate. The main topics addressed are: (i) output and employment determination; (ii) inflation dynamics and cyclical output fluctuations; (iii) Trade deficits and external debt sustainability; (iv) exchange rate determination and regimes; (v) debt and financial crises; (vi) monetary and fiscal stabilization policy.

First part: Output fluctuations and inflation
- Production, unemployment and inflation. Mishkin, Ch. 1, 2, 3.
- Financial markets, monetary policy and the Aggregate Demand. Mishkin, Ch. 5, 8, 9, 10.
- The Aggregate-Demand Aggregate-Supply model. Mishkin, Ch. 11, 12.
- The role of fiscal and monetary policy. Mishkin, Ch. 13.

Second part: International financial integration and crises
- The Balance of Payments and the international investment/debt position. Mishkin, Ch. 4, SUW Ch. 1
Saving, Investment, the current account and debt sustainability. Mishkin, Ch. 4. SUW Ch. 2, 3, 4.
- Exchange rate determination in the short and the long run. Mishkin, Ch. 4. SUW Ch. 8, 9, 10, 12.
- Sudden Stops, currency crises, and sovereign debt crises. SUW Ch. 13, 15.

SUW = Schmitt-Grohé, Uribe, Woodford, International Macroeconomics, 2021,
Microeconomics is preparatory to International Macroeconomics. Although there are no other formal prerequisites, knowledge of basic concepts of mathematics is recommended.
Metodi didattici
Lectures and review sessions.
Lectures present the main macroeconomic relations and discuss policy issues. Review sessions provide the instruments to solve exercises on the topics addressed in the lectures.
Materiale di riferimento
Mishkin, Frederic S., Macroeconomics: Policy and Practice, 2nd Edition, Pearson 2015.

Schmitt-Grohé, Stephanie, Uribe Martin, and Michael Woodford, International Macroeconomics, Columbia University, July 2021, downloadable

Power point presentations and further readings will be available on the course webpage on
Modalità di verifica dell’apprendimento e criteri di valutazione
Written exam (1 hour and 30 minutes). The exam covers all the topics presented during lectures and review sessions and it consists of a series of open-ended questions which may include calculations and/or explanation and/or technical analysis. In case the exam will have to be taken online, It will be given remotely using the Zoom platform.
Lezioni: 80 ore
Martedì 9:00-11:00 e su appuntamento; contattatemi per email
DEMM, via Conservatorio 7, stanza 5 secondo piano