OVERVIEW

The course introduces the concept of sustainable development from an economic point of view and analyzes its implications for the economic-financial system, both in reference to the decisions of market players and policy makers.

AIMS AND CONTENT

LEARNING OUTCOMES

The aim of the course is to provide the theoretical and methodological tools necessary for the understanding and analysis of the factors and structural elements of the economic-financial system in relation to the objectives of sustainable development in the economic, social and environmental domains, with specific reference to United Nations 2030 Agenda.

AIMS AND LEARNING OUTCOMES

At the end of the course the student will be able to:

• understand the functioning of the economic system and the interaction between the economy, the financial system and climate change;
• understand the sustainable development strategies of the main economic actors involved in the decision-making process, both public and private;
• analyze the risks and opportunities offered by the economic-financial system for the ecological transition;
• develop simulation models to evaluate the effects of the main public policies for sustainable development.

TEACHING METHODS

Lectures and computer exercises

SYLLABUS/CONTENT

The course is organized in the following sections:

Part 1: Principles of Economics

• Scarcity, choice and economic systems
• Demand, supply and the circular flow
• Macroeconomics history

Part 2: Equilibrium in the goods market and the money market

• The circular flow of income and the Keynesian multiplier
• The effect of government intervention through fiscal policy
• Money: economic functions and creation process
• The central bank and the money market equilibrium
• The IS-LM model

Part 3: Relaxing the fixed price hypothesis

• The WS-PS model of the labour market
• The Phillips curve, the NAIRU, and the role of expectations
• The AS-AD model
• Supply side policies, credibility and long-run reforms

Part 4: International trade, growth and exogenous crisis

• Exchange rates and the Mundell-Fleming model
• The Solow model of growth
• AS-AD Model and COVID-19 Pandemic

Part 5: Sustainable development, definition and issues

• The overexploitation of resources and the limits to growth
• Climate change: economic impact, risks and mitigation policies
• The financialization of the economy, financial bubbles, economic cycles and inequality
• The UN 2030 agenda

Part 6: Policies for sustainable development

• The sustainable business and the sustainability report
• The ESG criteria for investments
• Public policies of taxation and creation of markets for the reduction of externalities

Part 7: Modeling and simulation for the study of sustainable development:

• Stock-flow consistent models (SFC), matrices of representation and integration between the real, monetary and financial sectors of the economy
• Multisectoral input-output (IO) models
• Agent-based models (ABM), heterogeneity and interactions
• Computational experiments and case study analysis for the sustainable transition

RECOMMENDED READING/BIBLIOGRAPHY

Blanchard O. (2021). Macroeconomics, Pearson, 8th ed

Godley W., Lavoie M. (2007). Monetary Economics. An Integrated Approach to Credit, Money, Income, Production and Wealth. Palgrave

Miller R.E, Blair P.D. (2022). Input-Output Analysis. Foundations and Extensions. Cambridge University Press, 3rd ed

Slides and scientific papers provided by professors

TEACHERS AND EXAM BOARD

Exam Board

SILVANO CINCOTTI (President)

SILVIA MASSA

LINDA MADDALENA PONTA

STEFANIA TESTA

MARCO RABERTO (President Substitute)

LESSONS

EXAMS

EXAM DESCRIPTION

Oral exam

ASSESSMENT METHODS

Know-how and ability to apply methodologies and technologies developed during the course and capability to cope on case studies with skills and competences acquired during the course

Exam schedule