Course Contents

Introduction to Economic Policy

Dear students,

thank you for enrolling the course of Economic Policy. I hope it will be interesting for you and you will learn something new.

The course is based on this book: Bénassy-Quéré, A. et al. Economic Policy. Theory and Practise. Oxford University Press, 2010. ISBN 978-0-19-532273-6

The book is available in the library so it is not necessary to buy. Some technical and more formalized parts of the book will be skipped. The book (in English edition) does not cover the last two lectures. When studying for the final exam you can orient yourself according to lectures contents.


Assessment methods

To end this course successfully you need to write a seminar work (project) that will be presented during the last two or three classes. The presentation should last approximately 15 minutes. The suggested topics are published in the information system  (see the link "Topic Lists"), you can enroll from 26. 9. 2018 15:00. You are from various countries so you can design your own topic you will find interesting for other students. In this case send me at first your project proposal via email. 

You need to succeed in the final written exam. It will have the form of two short essays on the assigned topic. The exam terms will be tailored to your possibilities.

The paper

The paper (seminar work) is supposed to be logically coherent text with the range of about 4-5 standard pages. It should be divided into three parts: introduction, analytical part and a conclusion. The introduction should include the motivation and the aim of the paper. The analytical part is the main part of the paper. It is usually divided into chapters, but it is not necessary. This part should contain indentifiable author’s (student’s) own contribution in the form of his own empirical analysis, commentary, polemics, etc. The evaluation of the paper will also include the number and quality of resources (references) used. The conclusion  is a summary of what the author has reached and should answer the research question formulated in the introduction.
 
Try to avoid these shortcomings:
 
1. Beware of plagiarism! If you are using someone else’s expressions, data etc. or if you borrow someone else’s ideas, you must give a complete reference.
2. Try to avoid unnecessary and useless rewriting of basic textbooks with no value added.
3. The common problem is  too wide scope of the text, try to focus on some specific problem(s).
 
The paper should be uploaded to the information system (via Homework Vault) or by e-mail no later than three days before the presentation. In case of plagiarism you will get grade „F“ without possibility of correction.
 
 
Presentation
 
The aim is to present your paper to other students. The ppt presentation should take 10-15 minutes. In the end of the class I will provide you feedback and the grade (A-F).
 

Presentation itinerary:
 
27. 11.
 
Khaled Omar Jalal Khaleel: Limits of economic policy
Ivo Čarapina: Institutional aspects of monetary policy
Aizhanar Abdullaeva: Institutional aspects of monetary policy
Noor Zubidat: Economic opennes if selected country and its consequences
 
4. 12.
 
Pablo Santovenia: The economic consequences of the euro
Adife Merve Ekentok: The economic consequences of the euro
Javier Moran Alcantara: Reforming labour market institutions in selected country
Veronika Musilová: Welfare reforms in selected country


Exam terms:

There will be two examination dates: 11.12. and 8.1. If you choose the first term, you can enroll to retake the exams on 8.1. There will be third term in January, if necessary. 


Exam:

Before starting the exam, two questions will be drawn (from to following list) to which you will answer. (One exemption: The questions 8 and 9 will not be in the test at the same time.) The assessment will reflect comprehensiveness and factual accuracy of the text. You can use uploaded presentations as guide lines for your preparation (for scope what should the answer include). For details see your notes from lectures or the textbook. The answers should have the form of coherent text (no slogans).


The list of questions:

1. Describe reasons of government intervention in the economy (three functions of economic policy).

2. Discuss the main limits to the traditional approach to economic policy. Give example and possible solution to each of them.

3. (a) Suppose you are a Keynesian economist. Do you believe fiscal policy can get the economy out of recession? Explain it. (b) Suppose you are a neoclassical (liberal) economist. Do you believe fiscal policy can get the economy out of recession? Explain it.

4. Are you concerned about high fiscal deficits? Why or why not? Imagine your job is to stabilize or cut the debt burden. What are theoretical possibilities to do it?

5. Imagine you are a central banker and you want to stimulate the economy. How would you use each tools of monetary policy? Explain its detailed functioning. What is meant by unconventional tools of monetary policy? Present some examples.

6. Describe in detail how can central bank build up its credibility. Why inflation targeting has become so popular in the 2000s?

7. Explain detailed functioning of each transmission channel of monetary policy.

8. Discuss the pros and cons of fixed exchange rate regime. What is more efficient under this regime: monetary or fiscal policy? Explain it.

9. Discuss the pros and cons of flexible exchange rate regime. What is more efficient under this regime: monetary or fiscal policy? Explain it.

10. Describe in detail all relevant government policies promoting long-term economic growth.

11. Describe in detail impact of relevant government policies or regulations on unemployment rate. What would you recommend to reduce the natural rate of unemployment?

12. Describe recent trends in income inequalities and discuss the reasons. What should be the role of the government in social policy according to your opinion?