Economic Policy (2017/2018)

Course partially running (all years except the first)

Course code
Name of lecturers
Roberto Ricciuti, Giovanni Tondini
Roberto Ricciuti
Number of ECTS credits allocated
Academic sector
Language of instruction
Secondo Semestre Triennali dal Feb 19, 2018 al Jun 1, 2018.

Lesson timetable

Go to lesson schedule

Learning outcomes

The course is divided in two modules. The module led by Gianni Tondini (1 credit) deals with general issues in Economic Policy. The module led by Roberto Ricciuti (8 credits) is ideally divided in three sections. The first analyses issues raised by the European Monetary Union, while the second one deals with financial crises in an historical perspective. The third section addresses the issue of varieties of capitalism in Europe. All the material of the Ricciuti module will be available in the elearning site.

At the end of the course, the student should demonstrate:
 Knowledge and understanding of the main issues facing the European economy;
 Applying knowledge and understanding to issues ranging from the functioning of the single currency to fiscal and monetary policies undertakin before, during and after the financial crisis;
 Making judgements on these issues;
 Written communication skills;
 Learning skills.


Prof. Tondini's module:
Balducci R., Candela G., Scorcu A, Introduzione alla Politica economica, Zanichelli, Bologna, chapters 1 and 7.

Prof. Ricciuti's module:
De Grauwe
I. The costs of a common currency. - II. The theory of optimum currency areas: a critique. - III. Benefits of a common currency. - IV. Costs and benefits compared - V. The fragility of incomplete monetary unions - VI. How to complete a monetary union. - VII. The transition towards a monetary union - VIII. The European Central Bank - IX. Monetary policy in the Euroarea - X. Budget policies in monetary unions - XI. The euro and the financial markets.

I. Growth, inclusion and new challenges: North European capitalism - II. Competitiveness and new forms of dualism: the continental capitalism - III. Adaptability, individualims and inequality: the anglo-saxon capitalism - IV. Lack of security and competiveness: the mediterranean capitalism.

Introduction - Cycles of sovereign debt default - Debt and domestic default: stylized facts - Domestic debt: the missing link between foreign default and high inflation - Domestic and foreign default: which is worst? which creditors are the most penalized? - Banking crises - Default through signorage - Inflation and modern currency crises -The subprime crisis in the US: an international and historical comparison - After the financial crises - The international dimension of the subprime crisis: contagion or common factors? - Composite indicators of financial distress - What we learned from crises.

Reference books
Author Title Publisher Year ISBN Note
L. Burroni Capitalismi a confronto Istituzioni e regolazione dell'economia nei paesi europei Il Mulino 2016
De Grauwe Economia dell'unione monetaria (Edizione 11) Il Mulino 2018
BALDUCCI R.-CANDELA G.-SCORCU A.E. Introduzione alla politica economica Zanichelli 2001 8808090817
C. Reinhart e P. Rogoff Questa volta è diverso. Otto secoli di follia finanziaria Il Saggiatore 2010

Assessment methods and criteria

The exam can be taken in two or one shots.

Mid-term: 60-minute written paper, two open questions, 50% of the final marks. Final exam: 60-minute written paper, two open questions, 50% of the final marks. The marks obtained in the mid-term exam expire after the June exam session.

Full exam: 90-minute written paper, four open questions.

The assessment method is the same for students attending or not attending the classes.