Economic policy: Theory and practice

The course focuses on major economic policy issues for advanced and emerging economies: fiscal policy; monetary policy; financial stability; growth; inequality and taxation.
The course is expected to be of relevance for students interested in what shapes economic policy: major stylized facts that capture the messages from history; theories that help understand these facts and represent the impact of policy decisions; controversies surrounding policy choices; institutions that contribute to determining them; and, last but not least, how experience, theories and institutions interact.

The course blends facts, theory and practice. It posits that the frequent disconnect between economic theory as generally taught in universities and economic policy as generally practiced in governments is unhelpful. Its aim is to help students build bridges between elegant models discussed in seminars and the daily life of economic policymaking in ministries, central banks and international organizations. It is based on the premise that going back and forth between practice and theory enlightens practice and helps construct better theories.

The content of the course is continuously adapted in view of the key policy issues of the time.

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.

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