The course, which is based on a forthcoming book, focuses on major economic policy issues for advanced and emerging economies: fiscal policy; monetary policy; financial stability; growth; inequality and taxation (with a degree of flexibility to adapt to the interests of the students).
The course blends facts, theory and practice. It posits that the frequent disconnect between economic theory and economic policy as generally practiced 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 starts from the premise that going back and forth between practice and theory enlightens practice and helps understand theory.
Teaching is interactive. Students are requested to write 5 one-pagers that jointly serve as a basis for discussion in the class as well as for grading.
The content of the course is continuously adapted in view of the key policy issues of the time. Sessions focus on major policy instruments (e.g. monetary policy) or objectives (e.g. growth). Each session is devoted to reviewing the main theoretical and empirical instruments, old and new, which are relevant to addressing current policy issues; to analysing how these instruments can be used to identify policy trade-offs and guide the policymakers’ choices; and to discussing the theoretical uncertainties, blind spots and controversies that warrant humility and caution when formulating policy advice.
This course is offered as the advanced replacement course for the C7 Applied Economic Analysis course. Therefore a good knowledge of essential macroeconomic analysis and familiarity with current economic policy discussions are required. Command of basic maths is a plus but not indispensable.
Please note: Allocation to all C7 economics courses will be based upon the placement test organized via Moodle.