Money and finance

The aim of the course is to provide a good knowledge and understanding of the effect of monetary policy on output and inflation relying on dynamic general equilibrium models of the economy. Competence is developed regarding: i) the monetary transmission mechanism; ii) financial frictions in credit markets; iii) the objectives and instruments of monetary policy with an emphasis on targeting regimes and policy rules; iv) operating procedures of monetary policy.

Students are expected to acquire the knowledge of the theory and practice of Monetary Economics and Macroeconomic Finance. In particular, they will be able to understand: i) Monetary policy (analysis, instruments, operating procedures, transmission mechanisms, policy goals and policy effectiveness); ii) financial instruments (bonds of different maturities, structure of interest rates, debt versus equity); iii) financial frictions due to informational asymmetries and their role in the transmission of monetary policy. Students will develop the basic skills for monetary economic analysis with special attention to the modeling of empirical results, the analysis of policy issues and their solution.