20500 - MONETARY POLICY AND FINANCIAL REGULATION: ECONOMICS AND POLITICAL ECONOMY
CLMG - M - IM - MM - AFC - CLAPI - CLEFIN-FINANCE - CLELI - ACME - DES-ESS - EMIT
Course taught in English
Go to class group/s: 31
By the early ‘2000, an increasing number of countries had adopted a well-defined central bank framework, which is characterized by two intertwined features: the authority becomes specialized in achieving the monetary policy goals and consequently its traditional responsibilities in pursuing the financial stability are less important in its institutional perimeter. But then, after the Great Crisis erupted in 2008, reforms are undertaken and projects are under discussion in order to reconsider the central bank role. The depth and breadth of the crisis motivate an overall reconsideration of the relationships between monetary policy on the one hand, and prudential regulation and supervision on the other, with specific attention to Europe and US.
The course is devoted to a better understanding of the drivers of the policy choices, mixing traditional economics and new political economy.
- Macroeconomics and Central Banking.
- Price Flexibility and Rules: Central Bank, Money and Banking Stability.
- Price Rigidity and Active Policies: Central Bank, Monetary Policy and Financial Repression.
- Price Flexibility and Rule Flexibility: Central Bank, Independence, Monetary Stability and Prudential Policy.
- Crisis and Post Crisis.
Slides and readings represent the teaching material. The class slides will be posted week by week on the website of the course. All the class slides and readings are compulsory exam material and have to be carefully prepared for the exam independently from the time allocated to them in class. Regular attendance is crucial for not falling behind. If the students miss the class, it is their responsibility to make up for the lecture notes and announcements made in class.
- S. EIJFFINGER, D. MASCIANDARO (eds.), Modern Monetary Policy and Central Bank Governance, Edward Elgar.