The course aims to provide students with the tools needed to understand the functioning of a monetary economy and the operative aspects of Central Bank monetary policies. It explains what money is, the different approaches to the determinants of the demand for money and its supply, and the real effects of monetary factors in the short and the long run according to the main macroeconomic theories. Knowledge of basic microeconomic and macroeconomic notions is a prerequisite for the course.
Curriculum
teacher profile teaching materials
1.1 Origins and Functions of Money – 1.2 The Evolution of the Credit Market – 1.3 Degree of Substitutability of Financial Assets and Definition of Monetary Aggregates – 1.4 Why Does a Central Bank Exist? – 1.5 The Institutional Setting of the European Monetary Union
II. The Demand for Money
2.1 Why Hold Money? – 2.2 Average Balance and Velocity of Circulation of Money – 2.3 The Demand for Money in the Fisher-Pigou Formulations – 2.4 The Demand for Money as a Store of Value – 2.5 The Valuation of Assets – 2.6 Keynes' Liquidity Preference – 2.7 The Theory of Portfolio Choice – 2.8 Tobin's Mean-Variance Model – 2.9 Types of Investors and Portfolio Choice – 2.10 The Demand for Money in Friedman and Monetarist Theory.
III. The Supply of Money and Financial Assets and the Equilibrium of the Monetary and Financial Sectors
3.1 Monetary Base and the Deposit and Credit Multiplier – 3.2 Credit Rationing and Collaterals – 3.3 Central Bank Intervention Tools – 3.4 Open Market Operations, Refinancing Rates, and Interbank Rates – 3.5 The Role of the Central Bank as a "Lender of Last Resort" – 3.6 Interest Rate Volatility and Monetary Policy Objectives and Constraints – 3.7 Classical and Post-Keynesian Approaches to the Money Supply: From the Comparison of the Metallic School and the Banking School to the Radcliffe Report – 3.8 The Position of Kaldor and Moore.
IV. Money, Prices, and Production
4.1 Money, Prices, and Production in Neoclassical Theory – 4.2 The Relationship Between Money, Prices, and Production in Keynes and the Keynesian Critique of the Quantity Theory of Money - 4.4 The Effects of Monetary Policy in the IS-LM and AD-AS Models – 4.5 Friedman's Restatement of the Quantity Theory – 4.6 Rational Expectations and New Classical Macroeconomics – 4.7 New Keynesian Models – 4.8 The Minsky Model – 4.9 Cost-Pull and Demand-Pull Inflation
V. The Transmission Mechanisms of Monetary Policy
5.1 The Debate on the Effects of Monetary Policy: Hypotheses on the Functions of Consumption and Investment – 5.2 The Direct Transmission Channel of Monetary Policy in the Monetarist Theory – 5.3 Inside Money, Outside Money, and Private Sector Net Wealth – 5.4 Wealth Effects, Crowding Out, and Crowding In in the Tobin Model – 5.5 The models of Blinder and Bernanke – 5.6 The Cost Channel of Monetary Policy
VI. Rules and Discretion
6.1 Fixed Rules and Flexible Rules – 6.2 Lucas's Critique – 6.3 The Taylor Rule and Inflation Targeting – 6.4 The Costs of Disinflation and Its Distributional Effects – 6.5 Structural Inflation, Imported Inflation, and Distributive Conflict – 6.6 The Need for Coordination with Fiscal Policy and Incomes Policy – 6.7 On the Independence of Central Bank
Levrero E.S. (2023), Slides and supplementary notes on monetary economics
Programme
I. Money, Monetary Institutions, and Financial Markets1.1 Origins and Functions of Money – 1.2 The Evolution of the Credit Market – 1.3 Degree of Substitutability of Financial Assets and Definition of Monetary Aggregates – 1.4 Why Does a Central Bank Exist? – 1.5 The Institutional Setting of the European Monetary Union
II. The Demand for Money
2.1 Why Hold Money? – 2.2 Average Balance and Velocity of Circulation of Money – 2.3 The Demand for Money in the Fisher-Pigou Formulations – 2.4 The Demand for Money as a Store of Value – 2.5 The Valuation of Assets – 2.6 Keynes' Liquidity Preference – 2.7 The Theory of Portfolio Choice – 2.8 Tobin's Mean-Variance Model – 2.9 Types of Investors and Portfolio Choice – 2.10 The Demand for Money in Friedman and Monetarist Theory.
III. The Supply of Money and Financial Assets and the Equilibrium of the Monetary and Financial Sectors
3.1 Monetary Base and the Deposit and Credit Multiplier – 3.2 Credit Rationing and Collaterals – 3.3 Central Bank Intervention Tools – 3.4 Open Market Operations, Refinancing Rates, and Interbank Rates – 3.5 The Role of the Central Bank as a "Lender of Last Resort" – 3.6 Interest Rate Volatility and Monetary Policy Objectives and Constraints – 3.7 Classical and Post-Keynesian Approaches to the Money Supply: From the Comparison of the Metallic School and the Banking School to the Radcliffe Report – 3.8 The Position of Kaldor and Moore.
IV. Money, Prices, and Production
4.1 Money, Prices, and Production in Neoclassical Theory – 4.2 The Relationship Between Money, Prices, and Production in Keynes and the Keynesian Critique of the Quantity Theory of Money - 4.4 The Effects of Monetary Policy in the IS-LM and AD-AS Models – 4.5 Friedman's Restatement of the Quantity Theory – 4.6 Rational Expectations and New Classical Macroeconomics – 4.7 New Keynesian Models – 4.8 The Minsky Model – 4.9 Cost-Pull and Demand-Pull Inflation
V. The Transmission Mechanisms of Monetary Policy
5.1 The Debate on the Effects of Monetary Policy: Hypotheses on the Functions of Consumption and Investment – 5.2 The Direct Transmission Channel of Monetary Policy in the Monetarist Theory – 5.3 Inside Money, Outside Money, and Private Sector Net Wealth – 5.4 Wealth Effects, Crowding Out, and Crowding In in the Tobin Model – 5.5 The models of Blinder and Bernanke – 5.6 The Cost Channel of Monetary Policy
VI. Rules and Discretion
6.1 Fixed Rules and Flexible Rules – 6.2 Lucas's Critique – 6.3 The Taylor Rule and Inflation Targeting – 6.4 The Costs of Disinflation and Its Distributional Effects – 6.5 Structural Inflation, Imported Inflation, and Distributive Conflict – 6.6 The Need for Coordination with Fiscal Policy and Incomes Policy – 6.7 On the Independence of Central Bank
Core Documentation
Arcelli M. (2007), L’economia monetaria e la politica monetaria dell’Unione Europea, CedamLevrero E.S. (2023), Slides and supplementary notes on monetary economics
Attendance
There is no obligation to attendType of evaluation
The written test consists of 6 questions, two relating to the institutional part of the course on the functions of money and the instruments of monetary policy, three questions with a short answer on the theoretical part and one question on a topic of the program to be answered in more depth . Passing the written test is a prerequisite for admission to the final evaluation. teacher profile teaching materials
1.1 Origins and Functions of Money – 1.2 The Evolution of the Credit Market – 1.3 Degree of Substitutability of Financial Assets and Definition of Monetary Aggregates – 1.4 Why Does a Central Bank Exist? – 1.5 The Institutional Setting of the European Monetary Union
II. The Demand for Money
2.1 Why Hold Money? – 2.2 Average Balance and Velocity of Circulation of Money – 2.3 The Demand for Money in the Fisher-Pigou Formulations – 2.4 The Demand for Money as a Store of Value – 2.5 The Valuation of Assets – 2.6 Keynes' Liquidity Preference – 2.7 The Theory of Portfolio Choice – 2.8 Tobin's Mean-Variance Model – 2.9 Types of Investors and Portfolio Choice – 2.10 The Demand for Money in Friedman and Monetarist Theory.
III. The Supply of Money and Financial Assets and the Equilibrium of the Monetary and Financial Sectors
3.1 Monetary Base and the Deposit and Credit Multiplier – 3.2 Credit Rationing and Collaterals – 3.3 Central Bank Intervention Tools – 3.4 Open Market Operations, Refinancing Rates, and Interbank Rates – 3.5 The Role of the Central Bank as a "Lender of Last Resort" – 3.6 Interest Rate Volatility and Monetary Policy Objectives and Constraints – 3.7 Classical and Post-Keynesian Approaches to the Money Supply: From the Comparison of the Metallic School and the Banking School to the Radcliffe Report – 3.8 The Position of Kaldor and Moore.
IV. Money, Prices, and Production
4.1 Money, Prices, and Production in Neoclassical Theory – 4.2 The Relationship Between Money, Prices, and Production in Keynes and the Keynesian Critique of the Quantity Theory of Money - 4.4 The Effects of Monetary Policy in the IS-LM and AD-AS Models – 4.5 Friedman's Restatement of the Quantity Theory – 4.6 Rational Expectations and New Classical Macroeconomics – 4.7 New Keynesian Models – 4.8 The Minsky Model – 4.9 Cost-Pull and Demand-Pull Inflation
V. The Transmission Mechanisms of Monetary Policy
5.1 The Debate on the Effects of Monetary Policy: Hypotheses on the Functions of Consumption and Investment – 5.2 The Direct Transmission Channel of Monetary Policy in the Monetarist Theory – 5.3 Inside Money, Outside Money, and Private Sector Net Wealth – 5.4 Wealth Effects, Crowding Out, and Crowding In in the Tobin Model – 5.5 The models of Blinder and Bernanke – 5.6 The Cost Channel of Monetary Policy
VI. Rules and Discretion
6.1 Fixed Rules and Flexible Rules – 6.2 Lucas's Critique – 6.3 The Taylor Rule and Inflation Targeting – 6.4 The Costs of Disinflation and Its Distributional Effects – 6.5 Structural Inflation, Imported Inflation, and Distributive Conflict – 6.6 The Need for Coordination with Fiscal Policy and Incomes Policy – 6.7 On the Independence of Central Bank
Levrero E.S. (2023), Slides and supplementary notes on monetary economics
Programme
I. Money, Monetary Institutions, and Financial Markets1.1 Origins and Functions of Money – 1.2 The Evolution of the Credit Market – 1.3 Degree of Substitutability of Financial Assets and Definition of Monetary Aggregates – 1.4 Why Does a Central Bank Exist? – 1.5 The Institutional Setting of the European Monetary Union
II. The Demand for Money
2.1 Why Hold Money? – 2.2 Average Balance and Velocity of Circulation of Money – 2.3 The Demand for Money in the Fisher-Pigou Formulations – 2.4 The Demand for Money as a Store of Value – 2.5 The Valuation of Assets – 2.6 Keynes' Liquidity Preference – 2.7 The Theory of Portfolio Choice – 2.8 Tobin's Mean-Variance Model – 2.9 Types of Investors and Portfolio Choice – 2.10 The Demand for Money in Friedman and Monetarist Theory.
III. The Supply of Money and Financial Assets and the Equilibrium of the Monetary and Financial Sectors
3.1 Monetary Base and the Deposit and Credit Multiplier – 3.2 Credit Rationing and Collaterals – 3.3 Central Bank Intervention Tools – 3.4 Open Market Operations, Refinancing Rates, and Interbank Rates – 3.5 The Role of the Central Bank as a "Lender of Last Resort" – 3.6 Interest Rate Volatility and Monetary Policy Objectives and Constraints – 3.7 Classical and Post-Keynesian Approaches to the Money Supply: From the Comparison of the Metallic School and the Banking School to the Radcliffe Report – 3.8 The Position of Kaldor and Moore.
IV. Money, Prices, and Production
4.1 Money, Prices, and Production in Neoclassical Theory – 4.2 The Relationship Between Money, Prices, and Production in Keynes and the Keynesian Critique of the Quantity Theory of Money - 4.4 The Effects of Monetary Policy in the IS-LM and AD-AS Models – 4.5 Friedman's Restatement of the Quantity Theory – 4.6 Rational Expectations and New Classical Macroeconomics – 4.7 New Keynesian Models – 4.8 The Minsky Model – 4.9 Cost-Pull and Demand-Pull Inflation
V. The Transmission Mechanisms of Monetary Policy
5.1 The Debate on the Effects of Monetary Policy: Hypotheses on the Functions of Consumption and Investment – 5.2 The Direct Transmission Channel of Monetary Policy in the Monetarist Theory – 5.3 Inside Money, Outside Money, and Private Sector Net Wealth – 5.4 Wealth Effects, Crowding Out, and Crowding In in the Tobin Model – 5.5 The models of Blinder and Bernanke – 5.6 The Cost Channel of Monetary Policy
VI. Rules and Discretion
6.1 Fixed Rules and Flexible Rules – 6.2 Lucas's Critique – 6.3 The Taylor Rule and Inflation Targeting – 6.4 The Costs of Disinflation and Its Distributional Effects – 6.5 Structural Inflation, Imported Inflation, and Distributive Conflict – 6.6 The Need for Coordination with Fiscal Policy and Incomes Policy – 6.7 On the Independence of Central Bank
Core Documentation
Arcelli M. (2007), L’economia monetaria e la politica monetaria dell’Unione Europea, CedamLevrero E.S. (2023), Slides and supplementary notes on monetary economics
Attendance
There is no obligation to attendType of evaluation
The written test consists of 6 questions, two relating to the institutional part of the course on the functions of money and the instruments of monetary policy, three questions with a short answer on the theoretical part and one question on a topic of the program to be answered in more depth . Passing the written test is a prerequisite for admission to the final evaluation. teacher profile teaching materials
1.1 Origins and Functions of Money – 1.2 The Evolution of the Credit Market – 1.3 Degree of Substitutability of Financial Assets and Definition of Monetary Aggregates – 1.4 Why Does a Central Bank Exist? – 1.5 The Institutional Setting of the European Monetary Union
II. The Demand for Money
2.1 Why Hold Money? – 2.2 Average Balance and Velocity of Circulation of Money – 2.3 The Demand for Money in the Fisher-Pigou Formulations – 2.4 The Demand for Money as a Store of Value – 2.5 The Valuation of Assets – 2.6 Keynes' Liquidity Preference – 2.7 The Theory of Portfolio Choice – 2.8 Tobin's Mean-Variance Model – 2.9 Types of Investors and Portfolio Choice – 2.10 The Demand for Money in Friedman and Monetarist Theory.
III. The Supply of Money and Financial Assets and the Equilibrium of the Monetary and Financial Sectors
3.1 Monetary Base and the Deposit and Credit Multiplier – 3.2 Credit Rationing and Collaterals – 3.3 Central Bank Intervention Tools – 3.4 Open Market Operations, Refinancing Rates, and Interbank Rates – 3.5 The Role of the Central Bank as a "Lender of Last Resort" – 3.6 Interest Rate Volatility and Monetary Policy Objectives and Constraints – 3.7 Classical and Post-Keynesian Approaches to the Money Supply: From the Comparison of the Metallic School and the Banking School to the Radcliffe Report – 3.8 The Position of Kaldor and Moore.
IV. Money, Prices, and Production
4.1 Money, Prices, and Production in Neoclassical Theory – 4.2 The Relationship Between Money, Prices, and Production in Keynes and the Keynesian Critique of the Quantity Theory of Money - 4.4 The Effects of Monetary Policy in the IS-LM and AD-AS Models – 4.5 Friedman's Restatement of the Quantity Theory – 4.6 Rational Expectations and New Classical Macroeconomics – 4.7 New Keynesian Models – 4.8 The Minsky Model – 4.9 Cost-Pull and Demand-Pull Inflation
V. The Transmission Mechanisms of Monetary Policy
5.1 The Debate on the Effects of Monetary Policy: Hypotheses on the Functions of Consumption and Investment – 5.2 The Direct Transmission Channel of Monetary Policy in the Monetarist Theory – 5.3 Inside Money, Outside Money, and Private Sector Net Wealth – 5.4 Wealth Effects, Crowding Out, and Crowding In in the Tobin Model – 5.5 The models of Blinder and Bernanke – 5.6 The Cost Channel of Monetary Policy
VI. Rules and Discretion
6.1 Fixed Rules and Flexible Rules – 6.2 Lucas's Critique – 6.3 The Taylor Rule and Inflation Targeting – 6.4 The Costs of Disinflation and Its Distributional Effects – 6.5 Structural Inflation, Imported Inflation, and Distributive Conflict – 6.6 The Need for Coordination with Fiscal Policy and Incomes Policy – 6.7 On the Independence of Central Bank
Levrero E.S. (2023), Slides and supplementary notes on monetary economics
Programme
I. Money, Monetary Institutions, and Financial Markets1.1 Origins and Functions of Money – 1.2 The Evolution of the Credit Market – 1.3 Degree of Substitutability of Financial Assets and Definition of Monetary Aggregates – 1.4 Why Does a Central Bank Exist? – 1.5 The Institutional Setting of the European Monetary Union
II. The Demand for Money
2.1 Why Hold Money? – 2.2 Average Balance and Velocity of Circulation of Money – 2.3 The Demand for Money in the Fisher-Pigou Formulations – 2.4 The Demand for Money as a Store of Value – 2.5 The Valuation of Assets – 2.6 Keynes' Liquidity Preference – 2.7 The Theory of Portfolio Choice – 2.8 Tobin's Mean-Variance Model – 2.9 Types of Investors and Portfolio Choice – 2.10 The Demand for Money in Friedman and Monetarist Theory.
III. The Supply of Money and Financial Assets and the Equilibrium of the Monetary and Financial Sectors
3.1 Monetary Base and the Deposit and Credit Multiplier – 3.2 Credit Rationing and Collaterals – 3.3 Central Bank Intervention Tools – 3.4 Open Market Operations, Refinancing Rates, and Interbank Rates – 3.5 The Role of the Central Bank as a "Lender of Last Resort" – 3.6 Interest Rate Volatility and Monetary Policy Objectives and Constraints – 3.7 Classical and Post-Keynesian Approaches to the Money Supply: From the Comparison of the Metallic School and the Banking School to the Radcliffe Report – 3.8 The Position of Kaldor and Moore.
IV. Money, Prices, and Production
4.1 Money, Prices, and Production in Neoclassical Theory – 4.2 The Relationship Between Money, Prices, and Production in Keynes and the Keynesian Critique of the Quantity Theory of Money - 4.4 The Effects of Monetary Policy in the IS-LM and AD-AS Models – 4.5 Friedman's Restatement of the Quantity Theory – 4.6 Rational Expectations and New Classical Macroeconomics – 4.7 New Keynesian Models – 4.8 The Minsky Model – 4.9 Cost-Pull and Demand-Pull Inflation
V. The Transmission Mechanisms of Monetary Policy
5.1 The Debate on the Effects of Monetary Policy: Hypotheses on the Functions of Consumption and Investment – 5.2 The Direct Transmission Channel of Monetary Policy in the Monetarist Theory – 5.3 Inside Money, Outside Money, and Private Sector Net Wealth – 5.4 Wealth Effects, Crowding Out, and Crowding In in the Tobin Model – 5.5 The models of Blinder and Bernanke – 5.6 The Cost Channel of Monetary Policy
VI. Rules and Discretion
6.1 Fixed Rules and Flexible Rules – 6.2 Lucas's Critique – 6.3 The Taylor Rule and Inflation Targeting – 6.4 The Costs of Disinflation and Its Distributional Effects – 6.5 Structural Inflation, Imported Inflation, and Distributive Conflict – 6.6 The Need for Coordination with Fiscal Policy and Incomes Policy – 6.7 On the Independence of Central Bank
Core Documentation
Arcelli M. (2007), L’economia monetaria e la politica monetaria dell’Unione Europea, CedamLevrero E.S. (2023), Slides and supplementary notes on monetary economics
Attendance
There is no obligation to attendType of evaluation
The written test consists of 6 questions, two relating to the institutional part of the course on the functions of money and the instruments of monetary policy, three questions with a short answer on the theoretical part and one question on a topic of the program to be answered in more depth . Passing the written test is a prerequisite for admission to the final evaluation. teacher profile teaching materials
1.1 Origins and Functions of Money – 1.2 The Evolution of the Credit Market – 1.3 Degree of Substitutability of Financial Assets and Definition of Monetary Aggregates – 1.4 Why Does a Central Bank Exist? – 1.5 The Institutional Setting of the European Monetary Union
II. The Demand for Money
2.1 Why Hold Money? – 2.2 Average Balance and Velocity of Circulation of Money – 2.3 The Demand for Money in the Fisher-Pigou Formulations – 2.4 The Demand for Money as a Store of Value – 2.5 The Valuation of Assets – 2.6 Keynes' Liquidity Preference – 2.7 The Theory of Portfolio Choice – 2.8 Tobin's Mean-Variance Model – 2.9 Types of Investors and Portfolio Choice – 2.10 The Demand for Money in Friedman and Monetarist Theory.
III. The Supply of Money and Financial Assets and the Equilibrium of the Monetary and Financial Sectors
3.1 Monetary Base and the Deposit and Credit Multiplier – 3.2 Credit Rationing and Collaterals – 3.3 Central Bank Intervention Tools – 3.4 Open Market Operations, Refinancing Rates, and Interbank Rates – 3.5 The Role of the Central Bank as a "Lender of Last Resort" – 3.6 Interest Rate Volatility and Monetary Policy Objectives and Constraints – 3.7 Classical and Post-Keynesian Approaches to the Money Supply: From the Comparison of the Metallic School and the Banking School to the Radcliffe Report – 3.8 The Position of Kaldor and Moore.
IV. Money, Prices, and Production
4.1 Money, Prices, and Production in Neoclassical Theory – 4.2 The Relationship Between Money, Prices, and Production in Keynes and the Keynesian Critique of the Quantity Theory of Money - 4.4 The Effects of Monetary Policy in the IS-LM and AD-AS Models – 4.5 Friedman's Restatement of the Quantity Theory – 4.6 Rational Expectations and New Classical Macroeconomics – 4.7 New Keynesian Models – 4.8 The Minsky Model – 4.9 Cost-Pull and Demand-Pull Inflation
V. The Transmission Mechanisms of Monetary Policy
5.1 The Debate on the Effects of Monetary Policy: Hypotheses on the Functions of Consumption and Investment – 5.2 The Direct Transmission Channel of Monetary Policy in the Monetarist Theory – 5.3 Inside Money, Outside Money, and Private Sector Net Wealth – 5.4 Wealth Effects, Crowding Out, and Crowding In in the Tobin Model – 5.5 The models of Blinder and Bernanke – 5.6 The Cost Channel of Monetary Policy
VI. Rules and Discretion
6.1 Fixed Rules and Flexible Rules – 6.2 Lucas's Critique – 6.3 The Taylor Rule and Inflation Targeting – 6.4 The Costs of Disinflation and Its Distributional Effects – 6.5 Structural Inflation, Imported Inflation, and Distributive Conflict – 6.6 The Need for Coordination with Fiscal Policy and Incomes Policy – 6.7 On the Independence of Central Bank
Levrero E.S. (2023), Slides and supplementary notes on monetary economics
Programme
I. Money, Monetary Institutions, and Financial Markets1.1 Origins and Functions of Money – 1.2 The Evolution of the Credit Market – 1.3 Degree of Substitutability of Financial Assets and Definition of Monetary Aggregates – 1.4 Why Does a Central Bank Exist? – 1.5 The Institutional Setting of the European Monetary Union
II. The Demand for Money
2.1 Why Hold Money? – 2.2 Average Balance and Velocity of Circulation of Money – 2.3 The Demand for Money in the Fisher-Pigou Formulations – 2.4 The Demand for Money as a Store of Value – 2.5 The Valuation of Assets – 2.6 Keynes' Liquidity Preference – 2.7 The Theory of Portfolio Choice – 2.8 Tobin's Mean-Variance Model – 2.9 Types of Investors and Portfolio Choice – 2.10 The Demand for Money in Friedman and Monetarist Theory.
III. The Supply of Money and Financial Assets and the Equilibrium of the Monetary and Financial Sectors
3.1 Monetary Base and the Deposit and Credit Multiplier – 3.2 Credit Rationing and Collaterals – 3.3 Central Bank Intervention Tools – 3.4 Open Market Operations, Refinancing Rates, and Interbank Rates – 3.5 The Role of the Central Bank as a "Lender of Last Resort" – 3.6 Interest Rate Volatility and Monetary Policy Objectives and Constraints – 3.7 Classical and Post-Keynesian Approaches to the Money Supply: From the Comparison of the Metallic School and the Banking School to the Radcliffe Report – 3.8 The Position of Kaldor and Moore.
IV. Money, Prices, and Production
4.1 Money, Prices, and Production in Neoclassical Theory – 4.2 The Relationship Between Money, Prices, and Production in Keynes and the Keynesian Critique of the Quantity Theory of Money - 4.4 The Effects of Monetary Policy in the IS-LM and AD-AS Models – 4.5 Friedman's Restatement of the Quantity Theory – 4.6 Rational Expectations and New Classical Macroeconomics – 4.7 New Keynesian Models – 4.8 The Minsky Model – 4.9 Cost-Pull and Demand-Pull Inflation
V. The Transmission Mechanisms of Monetary Policy
5.1 The Debate on the Effects of Monetary Policy: Hypotheses on the Functions of Consumption and Investment – 5.2 The Direct Transmission Channel of Monetary Policy in the Monetarist Theory – 5.3 Inside Money, Outside Money, and Private Sector Net Wealth – 5.4 Wealth Effects, Crowding Out, and Crowding In in the Tobin Model – 5.5 The models of Blinder and Bernanke – 5.6 The Cost Channel of Monetary Policy
VI. Rules and Discretion
6.1 Fixed Rules and Flexible Rules – 6.2 Lucas's Critique – 6.3 The Taylor Rule and Inflation Targeting – 6.4 The Costs of Disinflation and Its Distributional Effects – 6.5 Structural Inflation, Imported Inflation, and Distributive Conflict – 6.6 The Need for Coordination with Fiscal Policy and Incomes Policy – 6.7 On the Independence of Central Bank
Core Documentation
Arcelli M. (2007), L’economia monetaria e la politica monetaria dell’Unione Europea, CedamLevrero E.S. (2023), Slides and supplementary notes on monetary economics
Attendance
There is no obligation to attendType of evaluation
The written test consists of 6 questions, two relating to the institutional part of the course on the functions of money and the instruments of monetary policy, three questions with a short answer on the theoretical part and one question on a topic of the program to be answered in more depth . Passing the written test is a prerequisite for admission to the final evaluation. teacher profile teaching materials
1.1 Origins and Functions of Money – 1.2 The Evolution of the Credit Market – 1.3 Degree of Substitutability of Financial Assets and Definition of Monetary Aggregates – 1.4 Why Does a Central Bank Exist? – 1.5 The Institutional Setting of the European Monetary Union
II. The Demand for Money
2.1 Why Hold Money? – 2.2 Average Balance and Velocity of Circulation of Money – 2.3 The Demand for Money in the Fisher-Pigou Formulations – 2.4 The Demand for Money as a Store of Value – 2.5 The Valuation of Assets – 2.6 Keynes' Liquidity Preference – 2.7 The Theory of Portfolio Choice – 2.8 Tobin's Mean-Variance Model – 2.9 Types of Investors and Portfolio Choice – 2.10 The Demand for Money in Friedman and Monetarist Theory.
III. The Supply of Money and Financial Assets and the Equilibrium of the Monetary and Financial Sectors
3.1 Monetary Base and the Deposit and Credit Multiplier – 3.2 Credit Rationing and Collaterals – 3.3 Central Bank Intervention Tools – 3.4 Open Market Operations, Refinancing Rates, and Interbank Rates – 3.5 The Role of the Central Bank as a "Lender of Last Resort" – 3.6 Interest Rate Volatility and Monetary Policy Objectives and Constraints – 3.7 Classical and Post-Keynesian Approaches to the Money Supply: From the Comparison of the Metallic School and the Banking School to the Radcliffe Report – 3.8 The Position of Kaldor and Moore.
IV. Money, Prices, and Production
4.1 Money, Prices, and Production in Neoclassical Theory – 4.2 The Relationship Between Money, Prices, and Production in Keynes and the Keynesian Critique of the Quantity Theory of Money - 4.4 The Effects of Monetary Policy in the IS-LM and AD-AS Models – 4.5 Friedman's Restatement of the Quantity Theory – 4.6 Rational Expectations and New Classical Macroeconomics – 4.7 New Keynesian Models – 4.8 The Minsky Model – 4.9 Cost-Pull and Demand-Pull Inflation
V. The Transmission Mechanisms of Monetary Policy
5.1 The Debate on the Effects of Monetary Policy: Hypotheses on the Functions of Consumption and Investment – 5.2 The Direct Transmission Channel of Monetary Policy in the Monetarist Theory – 5.3 Inside Money, Outside Money, and Private Sector Net Wealth – 5.4 Wealth Effects, Crowding Out, and Crowding In in the Tobin Model – 5.5 The models of Blinder and Bernanke – 5.6 The Cost Channel of Monetary Policy
VI. Rules and Discretion
6.1 Fixed Rules and Flexible Rules – 6.2 Lucas's Critique – 6.3 The Taylor Rule and Inflation Targeting – 6.4 The Costs of Disinflation and Its Distributional Effects – 6.5 Structural Inflation, Imported Inflation, and Distributive Conflict – 6.6 The Need for Coordination with Fiscal Policy and Incomes Policy – 6.7 On the Independence of Central Bank
Levrero E.S. (2023), Slides and supplementary notes on monetary economics
Programme
I. Money, Monetary Institutions, and Financial Markets1.1 Origins and Functions of Money – 1.2 The Evolution of the Credit Market – 1.3 Degree of Substitutability of Financial Assets and Definition of Monetary Aggregates – 1.4 Why Does a Central Bank Exist? – 1.5 The Institutional Setting of the European Monetary Union
II. The Demand for Money
2.1 Why Hold Money? – 2.2 Average Balance and Velocity of Circulation of Money – 2.3 The Demand for Money in the Fisher-Pigou Formulations – 2.4 The Demand for Money as a Store of Value – 2.5 The Valuation of Assets – 2.6 Keynes' Liquidity Preference – 2.7 The Theory of Portfolio Choice – 2.8 Tobin's Mean-Variance Model – 2.9 Types of Investors and Portfolio Choice – 2.10 The Demand for Money in Friedman and Monetarist Theory.
III. The Supply of Money and Financial Assets and the Equilibrium of the Monetary and Financial Sectors
3.1 Monetary Base and the Deposit and Credit Multiplier – 3.2 Credit Rationing and Collaterals – 3.3 Central Bank Intervention Tools – 3.4 Open Market Operations, Refinancing Rates, and Interbank Rates – 3.5 The Role of the Central Bank as a "Lender of Last Resort" – 3.6 Interest Rate Volatility and Monetary Policy Objectives and Constraints – 3.7 Classical and Post-Keynesian Approaches to the Money Supply: From the Comparison of the Metallic School and the Banking School to the Radcliffe Report – 3.8 The Position of Kaldor and Moore.
IV. Money, Prices, and Production
4.1 Money, Prices, and Production in Neoclassical Theory – 4.2 The Relationship Between Money, Prices, and Production in Keynes and the Keynesian Critique of the Quantity Theory of Money - 4.4 The Effects of Monetary Policy in the IS-LM and AD-AS Models – 4.5 Friedman's Restatement of the Quantity Theory – 4.6 Rational Expectations and New Classical Macroeconomics – 4.7 New Keynesian Models – 4.8 The Minsky Model – 4.9 Cost-Pull and Demand-Pull Inflation
V. The Transmission Mechanisms of Monetary Policy
5.1 The Debate on the Effects of Monetary Policy: Hypotheses on the Functions of Consumption and Investment – 5.2 The Direct Transmission Channel of Monetary Policy in the Monetarist Theory – 5.3 Inside Money, Outside Money, and Private Sector Net Wealth – 5.4 Wealth Effects, Crowding Out, and Crowding In in the Tobin Model – 5.5 The models of Blinder and Bernanke – 5.6 The Cost Channel of Monetary Policy
VI. Rules and Discretion
6.1 Fixed Rules and Flexible Rules – 6.2 Lucas's Critique – 6.3 The Taylor Rule and Inflation Targeting – 6.4 The Costs of Disinflation and Its Distributional Effects – 6.5 Structural Inflation, Imported Inflation, and Distributive Conflict – 6.6 The Need for Coordination with Fiscal Policy and Incomes Policy – 6.7 On the Independence of Central Bank
Core Documentation
Arcelli M. (2007), L’economia monetaria e la politica monetaria dell’Unione Europea, CedamLevrero E.S. (2023), Slides and supplementary notes on monetary economics
Attendance
There is no obligation to attendType of evaluation
The written test consists of 6 questions, two relating to the institutional part of the course on the functions of money and the instruments of monetary policy, three questions with a short answer on the theoretical part and one question on a topic of the program to be answered in more depth . Passing the written test is a prerequisite for admission to the final evaluation.