Economics

This course provides an overview of the development of economic theory, primarily emphasized as a science in evolution and fostered by the debate on the main economic issues of the time as a response to economic reality. The course focuses on major writers and economic issues central to the development of what is considered standard economic theory, as well as lesser-known contributions, to account for the historical and theoretical preconditions for contemporary economic theory.

Why are some countries rich while others are poor? Since the publication of the WEALTH OF NATIONS by Adam Smith, the sources of global inequality have been a key subject in economics. As Robert Lucas has famously claimed, once we start thinking about them, "it is hard to think about anything else." This makes the study of economic growth and development over the long run relevant for economics and the social sciences alike. Economic history introduces tools and methods of describing and analyzing growth and development and it develops critical thinking by demonstrating both the potential and limitations of economic theory in explaining economic change in the real world. The course consists of an overview of Western economic development from the early modern period, ca. 1500, to the present. The course focuses on the drivers of industrialization and of increased prosperity in the Western world and on the historical origins of the disparity in the wealth of nations today. The course is organized in two parts. The first part discusses the drivers of long-run development: the commercial, agricultural, and industrial revolutions, the role of institutions, and the origins of globalization. The second part illustrates the impact of major shocks on economic development in the 20th century: the World Wars, the Great Depression, and the challenges of the new globalization since the 1970s.

The course is part of the LM degree program and is intended for advanced level students. Enrollment is by consent of the instructor. This course studies the legal foundations of the European System of Central Banks (ESCB) and the ECB mandate of monetary policy also in comparison with the Federal Reserve system and central banking in other relevant jurisdictions. Conventional and unconventional monetary policy instruments are considered in depth, also in light of relevant CJEU case law. Macroprudential supervision, lending of last resort and remits over financial stability are discussed in all their institutional and legal implications.

This course uses economic analysis to explore important questions in contemporary public policy. The first term focuses on microeconomic policy problems while the second term focuses on macroeconomic policies. The use of mathematics is minimal (in particular with no calculus) and the emphasis of instruction is on graphical analysis and economic intuition. Precise topics and readings will be announced and are selected to be of current interest.  Last year’s topics included externalities from road transportation; the implications of high income taxes in Scandinavian countries; the trade-off behind unemployment insurance systems; the effectiveness of policies to support peripheral regions; the effects of international economic integration; the patterns of long-run income and wealth inequality; the economics of global warming; Why did the UK government grant independence to the Bank of England in 1997 and adopt an inflation target?; What caused the global financial crisis and how can policy prevent future crises?; How was global financial regulation reformed in the aftermath of the crisis?; What unconventional tools of monetary policy did central banks implement?; What causes currency crises, how can policy prevent them and what sparked the Trump trade war?; Why has the US been a more successful currency union than the Eurozone, what caused the European sovereign debt crisis and how is it related to Brexit?; How should governments deal with a debt crisis - did Greece make the right choice?; What drives convergence in income levels across countries, why do some countries stay poor and what can policy do about it?

This course provides a comprehensive understanding of financial derivatives. A derivative instrument is a contract between two parties whose payoff depends on the values of the underlying variables on a future specified date. The prices of any commodity assets (such as gold or oil) or financial assets (such as equity shares or bonds) can be the underlying variables, and these assets are called underlying assets. Four categories of derivatives are covered in this course, including forwards, futures, swaps, and options. The course discusses how and where to trade these derivatives, the methods to calculate the theoretical values of these derivatives, and the trading and hedging strategies associated with these financial derivatives.

This course introduces how to find relevant and exhaustive data, how to compute and analyze data, how to propose and objective assessment of the data, and how to recommend appropriate policy. It decrypts main statistical sources by economics and policy makers to formulate their decisions. Topics include surveys, GDP, unemployment, imbalances, and leading indicators. The course covers the process for determining these data points as well as the meaning embedded within them.

Through theory, guest lectures, and empirical exercises, this course allows students to gain practical experience in alternative investments. Students learn to identify what the return-risk characteristics of alternative investments are, what drives their appeal, how to understand related technical publications, and how to construct a portfolio using them.