CFU: 9

Year: II

Instructors: Vinicio Guidi and Leonardo Boncinelli

Theory of Money (3 credits - Prof. Guidi)

A] This module aims at introducing students to the main issues about money and monetary policy. First, the main functions of money are discussed: money as a medium of exchange, money as a store of value, the optimal quantity of money. Then, monetary policy issues are taken into consideration, with a specific concern for the euro area.

B]

- “Foundations of Modern Macroeconomics”, Ben J. Heijdra, Oxford University Press, 2009 [ch. 11]

- “Macroeconomic Theory: A Dynamic General Equilibrium Approach”, Michael Wickens, 2012 [ch. 8,13]

Topics in Macroeconomics (6 credits - Prof. Boncinelli)

A] Contents:

- a basic new Keynesian DSGE model;

- some reasons for price/wage stickiness: implicit/explicit labor contracts, efficiency wages, menu costs, rational inattention;

- coordination failures;

- communication policy: social value of public information, time inconsistency;

- equilibrium unemployment theory.

B]

- "Monetary Theory and Policy", Carl E. Walsh, The MIT Press, 2010 [ch.1, 8];

- papers and lecture slides.