Economic policy: Theory and practice

The course reviews the main theoretical and empirical instruments, old and new, which are relevant to addressing contemporaneous policy issues; it explains how these instruments can be used to identify policy trade-offs and guide the policymakers' choices; and it discusses the theoretical uncertainties, blind spots and controversies that warrant humility and caution when formulating policy advice. The course is expected to be of relevance for students interested in what shapes, or should shape, economic policy: the major stylised facts that capture the messages from history; the theories that help understand these facts and represent the impact of policy decisions; the controversies surrounding policy choices; the institutions that contribute to determining them; and, last but not least, how experience, theories and institutions interact.

Please note: This course is offered as the advanced replacement course for the C7 Applied Economic Analysis course. Therefore a good command of essential macroeconomic analysis and familiarity with current economic policy discussions are required.