MONETARY AND FINANCIAL ECONOMICS

In the course of economic studies, knowledge of money and financial markets is increasingly important. The current economic system increasingly assigns importance to finance and monetary policies

The knowledge of financial markets, the role of the monetary institutions and markets. The European Central Bank and the monetary policy

Microeconomics is a mandatory prerequisite for the exam, as outlined on the degree program website https://www.unive.it/web/it/1234/esami for the Degree in Economics and Business.
Political Economy is a prerequisite that provides the essential foundation for a complete understanding of the program. Knowledge of basic algebra, partial derivatives, and the mathematics curriculum for this degree program is also essential.

1.Introduction to the course, investments and financial assets
2.Financial Markets
3.Theory of consumption, savings and investment, intertemporal budget constraint
4.Portfolio performance and risk
5. Risk and risk aversion
6. Portfolio choices and CAPM
7. Net present value
8. Capital allocation
9. Central Bank, price stability and monetary policy
10. Interest rate policy, Taylor rule and monetary policy strategies
11. Interest rates, inflation and the term structure of interest rates
12. Market interest rates
13. The transmission channels of monetary policy
14. Monetary policy today

Essentials of Financial Economics: A Hands-On Approach
Autori: Michael Donadelli, Michele Costola, Ivan Gufler
Springer, 2025


Other books
Bodie, Kane and Markus "Investments" McGraw-Hill
“Istituzioni e Mercati Finanziari” seconda edizione – Mishkin, Eakins, Forestieri – Pearson Prentice Hall
“Economia Monetaria” di Fabio-Cesare Bagliano e Giuseppe Marotta, Il Mulino Strumenti
Dispensa “Note di Teoria e Scelte di Portafoglio”

To learn more:
“La vigilanza bancaria" Lorenzo Esposito, Giuseppe Mastromatteo
Storia, teorie, prospettive
EDIZIONE: 2021
COLLANA: Studi Superiori
ISBN: 9788829009459
Pagine: 476

Written exam lasting about 1 hour with multiple choice questions and exercises.
An exam simulation is scheduled during the course.

written

Evaluation in thirtieths. The exam is sufficient with a grade higher than 18. Specifically, numerical exercises and multiple-choice questions are proposed. Each exercise is assigned a score from 0 to 6 based on difficulty, and the sum of the points represents the final grade. A passing grade is achieved with the demonstrated ability to correctly complete at least the first exercises, which typically require learning essential concepts of monetary economics and finance: discount rate, yield curve, net present value, use of interest rates for monetary policy (contractive or expansionary), difference between real and nominal interest rates, and security pricing theory. Scores are assigned objectively, and the exam is passed with a minimum total score of 18/30.

Lectures included a theoretical component and several numerical examples. The theory was detailed with algebraic passages, graphs, and formal notation consistent with the available material. The numerical component supported the understanding of the theoretical explanation. The teaching method used was geared toward a thorough understanding of the program, enabling students to pass the exam, which followed the rigorous formulations of monetary and financial theory currently used in academic literature. Instructor slides and updated materials (articles and book chapters) were available on the course's Moodle platform.

This subject deals with topics related to the macro-area "Climate change and energy" and contributes to the achievement of one or more goals of U. N. Agenda for Sustainable Development