Macro Analysis - Module I - RoME (EIEF & LUISS)

Spring 2025

Outline

The course is an introduction to modern macroeconomics analysis based on first principles: planning optima, utility maximization, asset pricing and competitive equilibrium theory. The first part of the course focuses on dynamic efficiency and optimal growth with capital accumulation (the Ramsey Problem). The second part on optimal consumption, savings and asset accumulation from the individual point of view. We introduce the notions of inter-temporal budget constraints, Euler equations, consumption smoothing over time and states, risk aversion, precautionary saving and asset pricing. 

The course is based on my Lecture Notes (parts1 and 2 only)

Syllabus

Slides:

1. Solow Model and Dynamic Efficiency

2. The Optimal Growth Model

3. Savings and Consumption (certainty)

4. Savings and Consumption with uncertainty

5. Equilibrium

Assignments

European Monetary Policies (LUISS - SEP)

Fall 2021

6 classes - 15 hours

Office: Room 524, LUISS, Viale Romania 32

Office Hours: Tuesday, 15:00-17:00

Lectures: Oct. 13, 9:00-11:30 - Oct. 15, 14:30-17:00 - Oct. 20, 16:00-18:30 - Oct. 22, 14:30-17:00 - Oct. 27, 16:00-18:30 - Oct 28, 14:30-17:00

Course Description.

The course provides a basic understanding of the architecture of the European Institutions presiding over monetary policies. The objective of the course is acquiring a broad knowledge of the evolvement, characteristics and motivations of the main institutions conducting monetary policies in the European Monetary Union. Getting a close look of the ECB monetary policy actions during the first twenty years of the EMU. 

Primary Reference

• [BW] R. Baldwin, C. Wyplosz, The Economics of European Integration, 5th ed. McGraw Hill, 2015. Parts I, IV and V.

• [DG] P. De Grauwe, Economics of Monetary Union, 12th ed., Oxford U.P., 2018.

• [M] F. Mishkin, The Economics of Money, Banking, and Financial Markets, 12th ed., Pearson, 2019.

Slides

1. Review of monetary models

2. Monetary polices and tools

3. The ECB and the ECB's policies

Additional Materials

• Whelan, "Central Banks and Inflation: Where Do We Stand and How Did We Get There?, CEPR W.P. 16557, 2021. 

• Bordo and H. James, “The European Crisis in the Context of the history of previous financial crisis”, NBER W.P. 19112, 2013.

• De Grauwe, Europe Monetary Union, The New Palgrave Dictionary of Economics, in Steven N. Durlauf and Lawrence E. Blume (eds), Online Edition, 2011.

• Central Bank: Monetary Policy”, ECB W.P. 2219, 2018.

• ECB Economic Bulletin, Issue 6/2017.

• Issing, “Europe’s Hard Fix: The Euro Area”, speech at the Workshop on “Regional and International Currency Arrangements”, Vienna, 24 February 2006.

• Draghi, “Introductory remarks at the EP’s Economic and Monetary Affairs Committee”, 2014

• P. Hartmann and F. Smets, “The First Twenty Years of the European Central Bank: Monetary Policy.”