INTERNATIONAL ECONOMIC AND FINANCIAL POLICY

SECS-P/02 - 9 CFU - 1° semestre

Docente titolare dell'insegnamento

ALESSIO EMANUELE BIONDO

Prerequisiti richiesti

Mathematics, Microeconomics, Macroeconomics, Economic Policy.

Frequenza lezioni

Mandatory. Students are firmly suggested to attend lectures.

Contenuti del corso

Part I: National Accounts*, The Goods Market*, The Financial Market*, The IS-LM-BP Model and the International Economic Policy*, The Phillips Curve*, The Expectations Theories*, The AD-AS Model, the Equilibrium of the Economy and the Full Employment*, A Keynesian Model for Macroeconomic Equilibrium*, Inflation and Sovereign Debt*, The overshooting of the exchange rate*, Introduction to DSGE Macroeconomic models*, Econometric Policy Evaluation, Optimal Currency Areas*.

Part II: Introduction to Econophysics, The Efficient Market Hypothesis*, Random walk*, Lévy stochastic processes and limit theorems*, Scales in financial data*, Stationarity and time correlation*, Time correlation in financial time series*, Stochastic models of price dynamics*, Scaling and its breakdown*, Arch and Garch processes*, Econophysics Review I: Empirical Facts*.

Part III: Econophysics Review II: Agent-Based Models*, Behavioral Macroeconomics and Macroeconomic Behavior*, Alternative Paradigms for Economic Policy*, Agent-based Macro*, Towards a not too rational macroeconomics*, The representative agent framework: limits and critique*.

A star, *, indicates the topics without which the exam cannot be passed

Testi di riferimento

Part I:
- Handouts on International Macroeconomic Policy (see below); - Scientific Articles on Macroeconomics, (see below).
Part II:
- Mantegna R.N. – Stanley H.E., An Introduction to Econophysics. Cambridge University Press, 2000, chapters 1-10.

- Scientific Articles on statistical properties of Financial Markets, (see below).
Part III:
- Scientific Articles on Agent-Based Models for Macroeconomic Analysis, (see below).

Altro materiale didattico

Students may refer to the Studium page of the course for Handouts. Library Services provide students with the access to the Scientific Journals where they may find papers included in the program.

Programmazione del corso

	*	Argomenti	Riferimenti testi
1	*	Introduction and National Accounting	Handouts : n.0-Intro-and-Bibliography and n.1-Introduction-National-Accounting
2	*	The Goods Market	Handouts : n.2-The-Goods-Market
3	*	The Financial Market	Handouts : n.3-The-Financial-Market
4	*	International Economic Policy: IS-LM-BP	Handouts : n.4-The-IS-LM-Model
5	*	The Phillips Curve	Handouts : n.5- Phillips-Curve-and-Expectations
6	*	The Expectations Theories	Articles: see Bibliography (Handout n.0) for details
7	*	The Macroeconomic Equilibrium: AD-AS	Handouts : n.6-AD-AS
8	*	A Keynesian Model	Handouts : n.7-A-Keynesian-Framework
9	*	The Macroeconomic Equilibrium: AD-AS-revised	Handouts : n.8-AD-AS-revised
10	*	Inflation and Sovereign Debt Dynamics	Handouts : n.9- Inflation- n.10-Sovereign-Debt
11	*	Introduction to DSGE Models	Articles: see Bibliography (Handout n.0) for details
12	*	Econometric Policy Evaluation	Articles: see Bibliography (Handout n.0) for details
13	*	Optimal Currency Areas	Articles: see Bibliography (Handout n.0) for details
14	*	Efficient Market Hypothesis	Mantegna–Stanley, chapter: 1, 2
15	*	Statistic distributions for financial markets	Mantegna–Stanley, chapter: 3, 4
16	*	Statistical properties of financial markets data	Mantegna–Stanley, chapter: 5, 6
17	*	Time correlation of financial data	Mantegna–Stanley, chapter: 7, 8
18	*	Scaling and its breakdown; Arch and Garch	Mantegna–Stanley, chapter: 9, 10
19		Arch and Garch	Articles: see Bibliography (Handout n.0) for details
20	*	Empirical Facts of Financial Markets	Articles: see Bibliography (Handout n.0) for details
21	*	Agent-based Modeling for Macroeconomics	Articles: see Bibliography (Handout n.0) for details
22	*	Behavioral Macroeconomics	Articles: see Bibliography (Handout n.0) for details
23	*	Agent-based models of financial markets	Articles: see Bibliography (Handout n.0) for details
24	*	Alternative Paradigms of Economic Policy	Articles: see Bibliography (Handout n.0) for details
25		The Representative Agent: limits and critique	Articles: see Bibliography (Handout n.0) for details

* Conoscenze minime irrinunciabili per il superamento dell'esame.

N.B. La conoscenza degli argomenti contrassegnati con l'asterisco è condizione necessaria ma non sufficiente per il superamento dell'esame. Rispondere in maniera sufficiente o anche più che sufficiente alle domande su tali argomenti non assicura, pertanto, il superamento dell'esame.

Verifica dell'apprendimento

MODALITÀ DI VERIFICA DELL'APPRENDIMENTO

Regular exam consists of a preliminary written test followed, in case of success, by the oral test.

PROVE IN ITINERE

The course is divided in three Modules. At the end of each one, regularly attending students can sit a written test on the corresponding portion of the program.

PROVE DI FINE CORSO

No further tests.

ESEMPI DI DOMANDE E/O ESERCIZI FREQUENTI

1. Describe new policy approaches to dampen financial fluctuations: can you report which advantages they have with respect to mainstream theories?

2. Which role is played by the topology for the spreading of imitation among traders in financial markets? Does it affect the applicability of stabilization policies?

3. Do you think instruments exist in order to anticipate financial crises? Give your detailed opinion about the Basle Regulations for banking activities.

4. Describe the Rational Expectation Model and the Efficient Market Hypothesis and discuss their forecasting capacity for macroeconomic variables. Do you think that predictability exists in macroeconomics?

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