The purpose of this course is to learn how policy actions taken by monetary authorities affect variables like prices, output, consumption, investment, and interest rates, and through which transmissions mechanisms. The type of questions to address will be: Why people demand money? Does the quantity of money circulating in the economy matter? How does the banking system work? When do expansionary monetary policies produce expansionary effects of output? What are the dynamics of inflationary and hyperinflationary episodes? How does the monetary strategy adopted by a central bank change the answers to these questions?
The topics of money, banking and financial markets directly affect our life. The student will be introduced to many of the controversies about the conduct of economic policy that are the subject of debate and gain a clearer understanding of economic phenomena frequently discussed in the media.