The short course covers selected fiscal policy problems highlighted during the recent financial crisis. We will focus on the fiscal consolidation policies (austerity vs. alternatives) and on fiscal policy effects on economic growth. The course will also discuss methodology of sovereign debt ranking by major ranking agencies.
Course textbook There is no single required text that covers all of the material. Papers will be posted/distributed during the course. Good additional sources include VOX web site: http://www.voxeu.org/content/topics/macroeconomic-policy and an IMF blog edited by Olivier Blanchard: http://blog-imfdirect.imf.org/2013/04/29/rethinking-macroeconomic-policy/. Reading general economic journals as The Economist or Financial Times helps as well.
The following papers are recommended and will be used during the course:
Buti, Carnot (2013): The Deabte on Fiscal Policy in Europe, ECFIN Economic Brief, March 2013 Alesina, de Rugy: Austerity – The Relative Effects of tax Increases and Spending Cuts, Mercatus center, March 2013. Auerbach: Fiscal Multipliers in recession and Expansion, NEBR, January 2012. Alesina, Ardagna: The Design of Fiscal Adjustments, NBER, September 2012. Blanchard, Leigh: Growth Forecast Errors and Fiscal Multipliers, IMF, January 2013. Eyraud, Weber: The Challenge of Debt Reduction during Fiscal Consolidation, IMF, March 2013. Baum, Poplawski, Weber: Fiscal Multipliers and the State of the Economy, IMF, December 2012. How We Rate Sovereigns, Standard and Poors, March 2012 Proposed Refinements to the Sovereign Bond Rating methodology, Moody’s, December 2012.
European Central Bank (2001): Fiscal Policies and Economic growth, ECB Monthly Bulletin, August 2001, Frankfurt. pp 39-54 ONLY. J. von Hagen, A.H. Hallet and R. Strauch (2002): Quality and Success of Budgetary Consolidations, (Buti, CH2) also NBER, AVAILABLE ONLINE, 49 pages long update on their 2001 paper. Tanzi: Impact of large public debt on growth, in: Buti, von Hagen and Mongay (2002) Bezděk, V.; Dybczak, K. and Krejdl, A. (2003): Czech Fiscal Policy: Introductory Analysis (Part II: Cyclically Adjusted Fiscal Balance – OECD and ESCB Methods); Working Paper No.7, Czech National Bank; http://www.cnb.cz/en/pdf/wp7-2003.pdf.
Požadavky ke zkoušce - angličtina
Poslední úprava: Tomáš Wiesner (21.01.2019)
Grades will be based on
i) class participation: 20%,
ii) written test: 30%,
iii) final 2000-word paper on a subject related to the course. The paper should be well structured, internally consistent and concise and will add 50% to the grade.