MONETARY ECONOMICS

Degree course: 
Academic year when starting the degree: 
2013/2014
Year: 
2
Academic year in which the course will be held: 
2014/2015
Course type: 
Compulsory subjects, characteristic of the class
Credits: 
6
Period: 
Second semester
Standard lectures hours: 
40
Detail of lecture’s hours: 
Lesson (40 hours)
Requirements: 

Mod. 1 - Economics of Taxation
None

Mod. 2 - Monetary and credit economics
Have passed the examinations of Microeconomics and Macroeconomics.

Assessment: 
Voto Finale

Mod. 1 - Economics of Taxation
The objective is to provide the students with the knowledge necessary to understand the economic effects of taxation, with a specific focus on the Italian institutional context.

Mod. 2 - Monetary and credit economics
The course is devoted to the analysis of the relationship between money and credit and of the macroeconomic role of money and finance. To deal with these issues it will be given great attention to the analysis of the subprime financial crisis which is the immediate cause of the most heavy economic crisis since the Great Depression.

Mod. 1 - Economics of Taxation
Economic effects of taxation
- Principles and methodology of an economic analysis of taxation between equity (horizontal and vertical) and efficiency (incidence and neutrality)
Taxation and equity
- The redistributive objects of the public intervention
Taxation and firms
- The effects of taxes on firms’ choices: distribution of dividends, investment and financing.

Mode of Delivery: lectures.

Mod. 2 - Monetary and credit economics
1.A schematic description of the crisis.
a) The financial crisis: development and collapse of the subprime mortgage market.
b) From the financial crisis to the Great Recession: the three phases of the crisis.

2.The explanation of the origin of the crisis
a) the financial crisis and the Federal Reserve monetary policy (Taylor)
b) The crisis and the financial system: Finance has created an excessive amount of risk(Rajan)
c) The global saving glut and the crisis (Bernanke)

3. The crisis and the economic theory: the neoclassical theory of finance and the exogenous nature of the crisis.
a) The role of finance in accordance with the neoclassical theory.
b) The neoclassical theory of money and credit.
c) Financial intermediaries and information asymmetries.
d) Finance and growth.

4. The crisis and the economic theory: the Keynes-Schumpeter’s theory of finance and the endogenous nature of the crisis.
a) Hicks and the three stages of the evolution of the banking system
b) Keynes and Schumpeter: the relationship between bank money, investment decisions and uncertainty
c) Bank money and economic development: the Schumpeter’s analysis.
d) Saving decisions, wealth and speculation: the Keynes’s analysis
e) The endogenous nature of the subprime crisis: the analysis of Keynes and Minsky.

Mode of Delivery: lectures

Mod. 1 - Economics of Taxation
- Longobardi, E. (2009), “Economia tributaria”, McGraw-Hill, Milano, seconda edizione
- Panteghini P.M. (2009), “La tassazione delle società”, Il Mulino, Bologna, seconda edizione
- Bosi P. e M.C. Guerra (2013), “I tributi nell'economia italiana”, Il Mulino, Bologna

Assessment: final written exam

Mod. 2 - Monetary and credit economics

-Bernanke, B. 2005. The global saving glut and the U.S. current account deficit, Sandridge Lecture, March 10, 2005.
-Bernanke, B. 2007. Global imbalances: recent developments and prospects, Bundesbank lecture, September 11, 2007.
-G.Bertocco: The role of credit in a keynesian monetary economy, Review of Political Economy, 17, 4, pp. 489-511, 2005.
-G.Bertocco: The characteristics of a monetary economy: a Keynes-Schumpeter approach, Cambridge Journal of Economics, 31, 1, pp.101-122, 2007.
-G.Bertocco: Finance and development: is Schumpeter’s analysis still relevant?, Journal of Banking and Finance,32, pp. 1161-1175, 2008.
-J. Hicks: Una teoria della storia economica, Utet 1971, pp. 108-111.
J.M.Keynes: A monetary theory of production, 1933. C.W. vol. XIII, pp.408-411.
J.M.Keynes: The distinction between a co-operative economy and an entrepreneur economy, 1933, C.W. vol. XXIX, pp. 76-87.
-J.M.Keynes: La Teoria generale del reddito, dell’occupazione e della moneta, 1936, cap. 12, Lo stato dell’aspettativa a lungo termine.
J.M.Keynes: La teoria generale dell’occupazione, dell’interesse e della moneta, 1936, cap. 13, La teoria generale del tasso d i interesse.
P.Krugman: Gli errori degli economisti, Internazionale, 18 settembre 2009, pp.30-39.
-B.McCallum: Monetary Economics, Macmillan, 1989, pp. 25-30.
Minsky H., 1975. John Maynard Keynes, Columbia University Press.
Minsky, H., 1980. Money, financial markets and the coherence of a market economy, Journal of Post Keynesian Economics, vol. 3, 21-31
Minsky H., 1982. Can 'It' Happen Again? Essays on Instability and Finance, M.E.Sharpe, New York.
-M. Pagano: Financial markets and growth, European Economic Review, 37, pp. 613-622, 1993.
S.Rossi: Miseria e nobiltà della finanza, Il Mulino, 6, dicembre 2008, pp.1055-1065.
-Rajan, R., Terremoti finanziari, Eiunaudi, 2012.
-J.Schumpeter: Bank credit and the ‘creation’ of deposits, History of Economic Theory, pp. 1110-1117, 1954.
- -G.Tabellini: Idee e regole per il mondo dopo la tempesta. Il Sole 24 ore 7-5-2009.
-G.Tabellini: Il mondo ritorna a correre L’Italia non si fermi. Il Sole 24 ore 24-6-2009.
-J. B. Taylor: Fuori Strada. Come lo Stato ha causato, prolungato e aggravato la crisi finanziaria. IBL libri, 2009; cap. 1: Cosa ha causato la crisi finanziaria, pp. 25-38.

Assessment: the student will have to take a final written exam.