Università Roma Tre

The course will provide the analytical tools for understanding how the economic system as a whole is working. We will study the behavior of macroeconomic aggregates as domestic product, expenditure for consumption and investment, level of employment, level of the general price system, foreign trade, exchange rate, and moreover the mechanisms driving markets for goods, financial markets and the labor market. We will examine, at an introductory level, economic growth in the short and long run, fiscal, monetary and exchange rate policies, the macroeconomics of the European Economic and Monetary Union. Here you will find the topics of the lectures and their relation with the textbook and the supplementary notes available on the web page of the course.

Part I - Introduction and national accounts
0. Introduction to political economy and macroeconomics
1. A look to some issues of the global, European and Italian economies
2. Macroeconomic aggregates and national accounts. Main economic indicators. Basic statistical methods
Blanchard et al.: chapter I, II, Appendix 1. Supplementary notes

Part II - Basic macroeconomic models
3. Income-expenditure model in the closed economy
4. Income-expenditure model in the open economy
5. Money and financial markets
6. IS-LM model in the closed economy
7. Extended IS-LM model
8. IS-LM model in the open economy
Blanchard et al.: chapter III, IV (excluding appendix), V, VI, XVII, XVIII (excluding appendix), XIX (excluding appendix). Supplementary notes

Part III - Labor market, wages, prices
9. Labor market. Wage and price determination, Survey of models and model with imperfect competition in the labors and goods markets
10. AD-AS model
11. Inflation, unemployment, Phillips curve
Blanchard et al: chapter VII (excluding appendix), VIII (excluding par. 4 and appendix). Supplementary notes

Part IV - Medium run
12. IS-LM-PC model
13. Exchange rate systems
Blanchard et al.: chapter IX (excluding par. 4 and 5), XX (excluding par. 4.2 and appendix). Supplementary notes

Part V - Extensions
14. Accounting for economic growth, Solow growth model, technological progress
15. Expectations, production and economic policy
16. Macroeconomic policies: selected topics about public debt, fiscal rules and monetary policy rules
Blanchard et al.: chapter X, XIII (excluding par. 3), XVI, XXI (only par. 3.3), XXII (par. 2.1, 2.3, 2.5, 4.1), XXIII (par. 2.3, 4). Supplementary notes

Compulsory material:
1) TEXT BOOK: Olivier Blanchard, Alessia Amighini and Francesco Giavazzi, Macroeconomia, Nuova Edizione, Il Mulino, Bologna, 2016 (le parti da studiare sono indicate nel programma)
2) SUPPLEMENTARY NOTES available on the web page of the course

Optional in-depth material:
3) Marcella Corsi and Alessandro Roncaglia, Nuovi lineamenti di economia politica, Editori Laterza, Bari-Roma, 2017
4) Analytical and information materials will be discussed during the lectures and will be available on the web page of the course

The course consists of three modules
First module:
• National Accounts
• Aggregate demand. Income multipliers
• The IS-LM model

Second module:
• Aggregate demand in an open economy
• The IS-LM model in an open economy

Third module:
• The labour market
• The AD-AS model
• The natural rate of unemployment and the Phillips curve
• Inflation, production and money growth. The quantity theory of money
• Introduction to growth models

O. Blanchard, F. Giavazzi, A Amighini
Macroeconomia
Il Mulino, Bologna, 2010

Introduction
- What is Macroeconomics
- Some elements of the System of National Accounts

Part 1: The Short Run
- The Goods Market
- Financial Markets
- The IS-LM Model

Part 2: The Medium Run
- The Labor Market
- The Phillips Curve, the Natural Rate of Unemployment, and Inflation
- The IS-LM-PC Model

Part 3: Extensions
- Introduction to the theory of economic growth
- The open economy and the Exchange Rate Regimes

- Olivier Blanchard "Macroeconomics". 2020