Macroeconomic Policy in Europe
This course discusses extensively macroeconomic policy in Europe, in particular in the European Monetary Union (EMU). Being part of a one currency area implies restrictions on monetary and fiscal policy for an individual country. Therefore we need to know what the policy targets are at the level of the EMU, what instruments it uses and how effective it has been. The same holds for fiscal policy although the initial perception was that there are more degrees of freedom in fiscal policy for the participants. However, the Greek crisis has changed views on this. In particular the relation between deficits and debts has led to fierce debates between economists and policy makers.
In this course we will visit the European Parliament and we will relate the discussions to actual developments in the EMU.
Doelstellingen van dit vak
- Students will have a clear understanding of the (im)possibilities of macroeconomic policy in a one currency area.
- Students will have a clear understanding of the theoretical foundation of ECB’s monetary policy in the EMU.
- Students will gain knowledge about the governance of macroeconomic policy in the EMU.
- Students will have a clear understanding of fiscal federalism and why or why not we may need this in the EMU.
- Students will face the challenges of policy making in an EMU in which economic developments are not balanced.
Exchange students should have a BSc in economics.
To be announced.