COURSE DETAIL
Economic policies differ widely across countries and – within the same country – even over time. Among OECD countries, government expenditure ranges from less than 40% in the US to almost 60% in Finland. What explains these large differences? The many tools provided by economic theory generally fail to offer a complete and satisfactory answer to this question. The course mission is to analyze the determinants of economic policy in modern democracies and to show how these policies may differ according to the different political institutions in place. The course consists of four parts. The first part of the course discusses the tools of political economics. The second part of the course compares the welfare states across industrialized countries, with special emphasis on the pension systems and the labor market, and discusses the political feasibility of structural reforms. It also addresses the differences in economic policies that may arise from the political institutions, with particular emphasis on the analysis of the electoral rule and of the regime type. The third part analyzes dynamic policies – public debt, economic growth – in a political economy framework to understand how political incentives shape current and future policies. The last part addresses the debate between the role of culture and institutions in shaping economic growth. To feel comfortable in this course, students should be familiar with the optimization techniques learned in math and microeconomic courses.
COURSE DETAIL
This course introduces students to: (I) the measurement and structure of the national economy; (II) basic macroeconomic concepts (e.g., productivity, output & employment, consumption, saving & investment, long-run economic growth, and business cycles), and (III) a basic framework for macroeconomic analysis.
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The course builds on the concepts of macroeconomics in an open economy to discuss the determinants of exchange rates and the consequences of exchange rate policies for output and prices in the short and long run. A brief history of the international monetary system also explains the establishment of the single European currency. Basic elements of European central banking are discussed and specific issues are dealt in more depth, mainly relating to recent monetary developments including the global financial crisis. The content of the course includes the following: the balance of payments and the foreign exchange market; a simple theory of exchange rate determination, in the short and in the long run; fixed exchange rates and foreign exchange intervention; monetary and fiscal policies with different exchange rate regimes; from Bretton Woods to the Euro: theory and experience of optimal currency areas; monetary institutions and strategies in the Euro area; the international financial crisis: monetary policies and financial stability; the coming future of the international monetary system: the dollar problem, the role of the euro, and the emerging importance of China's money and finance.
COURSE DETAIL
At the end of class, students are expected to have
1) solid foundation in economic theory
2) mathematical and quantitative skills to the analysis of the different tasks of central banking.
The course will emphasize
1) Ability to apply economic concepts to explain real-world phenomena;
2) Understanding of institutions and policies;
The monetary policy decisions of central banks around the world are seen as crucial in global financial markets. In major economies, such as the US, Japan, the EU, and others, central banks focus on setting short-term interest rates. Their decisions to adjust interest rates have enormous and closely watched impacts on stock markets, bond markets, and banking markets. The first part of this course will focus on understanding how central banks use their powers, the macroeconomic theory that underlies the decision making of central banks and their effect on the economy and financial markets.
Though standard economic theory may imagine financial markets as operating according to rules of competitive supply and demand, in fact, distinct financial intermediaries such as banks are essential for the smooth operation of markets. In the second half of the class, we will focus on the economics and institutions of banking.
COURSE DETAIL
The course aims at analyzing the process of economic and political integration of European countries, through a theoretical, policy, and political perspective. European politics occurs in national capitals and in Brussels. Traditionally much of the disciplinary focus has either been on the European Union and integration or the national politics in the Member States. Increasingly, this failure to adequately explore how both levels of government interact reflects neither the state of European politics nor the cutting edge of research. The politics part of this course introduces students to a basic toolkit used by researchers of advanced democracies and international interdependence (including spatial models, veto players, two-level games etc.) to understand both domestic and EU-level politics in Europe in conjunction. The economics part of the course starts with a general overview of EU integration from the 1950s until today. It then moves to discussing the EU budget, with its sources of revenues and areas of expenditure. The main features of the Next Generation EU strategy are also extensively covered. This lays the foundations for studying the main policies currently undertaken by the European Union: competition, agriculture, cohesion, and international trade. The connection between economic and political dynamics is addressed, with specific attention to the link between globalization, Brexit, and the success of nationalist forces in Europe. A substantial part of the course is devoted to the Economic and Monetary Union: origins, architecture, and evolution over the Great Financial Crisis and the Covid-19 pandemic.
COURSE DETAIL
Subsequent to Public Economics I, Public Economics II continues to analyze market failure and the function of the government, specifically what the government should do in a market economy. This course covers the basic principle of public economics, especially the role of the government and the rationale for the policy, in a framework of applied microeconomics. The course teaches the standard approach of public economics, which is the foundation of economic analysis in any policy issue.
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COURSE DETAIL
This course introduces the issue of differentiation within the European Union. The first part of the course examines the various forms that differentiation takes within the European Union as well as outside of it. The second part of the course focuses on the Economic and Monetary Union as the most advanced examples of differentiated integration. It considers its various components and includes debates on ongoing reform discussions and open legal debates including the innovative NextGenerationEU program deployed in response to the COVID-19 pandemic.
COURSE DETAIL
This course covers economic strategy and management in a business context. It also addresses theory of economics in the perspective of business management.
COURSE DETAIL
This course considers the behavior of firms in a market economy. It has two parts. The first part on basic theory considers how firms behave under different market structures. The second part is policy oriented. It applies tools from the basic theory part to everyday problems and scenarios and tries to assess market efficiency and effects of possible intervention by the government or regulatory agencies. The two parts proceed simultaneously. Applying knowledge obtained in the class, students solve optimization problems and critically discuss real-life problems or scenarios.
COURSE DETAIL
This course explores the complexities of multinational financial management, ranging from the management of foreign currency exposures (to determine a subsidiary’s capital structure or to value an investment in a risky country) to the managerial and environmental considerations that make multinational financial decision-making so challenging. Financial decision making in the multinational setting requires a sound understanding of: 1) the extension of traditional finance considerations to a more complex global setting (i.e. Exchange Rate Effects, Global CAPM); 2) how institutional constraints can create obstacles and opportunities for multinational firms (i.e. Opportunities created by different markets); 3) the managerial objectives that can often limit the relevance of traditional financial objectives or institutional opportunities. The framework developed in the course suggests how to balance these three relevant factors: complex financial incentives have to be integrated with institutional obstacles and opportunities and aligned with managerial objectives. The goal then offers both a clear framework and a set of operative tools to understand the relationship between multinational firms and international financial markets. The whole structure of the course is applied, involves several real-world cases that are discussed in class, and is oriented to develop capabilities to understand and use international finance methodologies and practices used around the world. The course requires students to have familiarity with basic topics of corporate finance and a basic knowledge of concepts like risk, return, capital structure, and the CAPM as a prerequisite.
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