Economic Policy

Code:

2EAE03

Acronym:

PE

Keywords
Classification	Keyword
OFICIAL	Economics

Instance: 2013/2014 - 1S (of 09-09-2013 to 20-12-2013)

Active?	Yes
Responsible unit:	Agrupamento Científico de Economia
Course/CS Responsible:	Master in Economics and Business Administration

Cycles of Study/Courses

Acronym	No. of Students	Study Plan	Curricular Years	Credits UCN	Credits ECTS	Contact hours	Total Time
EAE	68	Bologna Syllabus since 2012	1	-	4	28	108

Teaching language

Portuguese

Objectives

This course aims to show how the government, through stabilization policies and policies for economic growth, can affect the main (macro) economic variables. By combining theoretical elements with the analysis of specific cases, the course covers mainly the short term, noting particularly the instruments and the effects of monetary and fiscal policies, but also includes the long term, analysing the measures and effects of structural policies.

Learning outcomes and competences

At the end of the course, students will be able to better understand the major instruments and effects of macroeconomic policies, either in the short as in the long run.

Working method

Presencial

Program

1. Macroeconomic equilibrium and economic policy 1.1. The model of the "three markets" and the macroeconomic equilibrium. 1.2. Economic policy: objectives, variables, and instruments. 2. Stabilization policies 2.1. Monetary policy: main instruments, the effects of monetary policy in an open economy, rules versus discretion. 2.2. Fiscal policy: automatic stabilizers versus discretionary policy, the effects of fiscal policy in an open economy, deficits and debt. 2.3. Stabilization policies in the euro zone: monetary policy and the ECB, fiscal policy and fiscal discipline, the policy responses to the recent crisis. 3. Structural policies 3.1. Real output, inflation and unemployment in the long term. 3.2. Structural policies in the euro area: the European approach, the case of the external financial assistance program for Portugal.

Mandatory literature

John E. Marthinsen; Managing in a Global Economy: Demystifying International Macroeconomics, Cengage, 2008

Teaching methods and learning activities

Classes combine the theoretical presentation of major elements with the discussion of individual cases in terms of definition and implementation of economic policies.

Evaluation Type

Distributed evaluation without final exam

Assessment Components

Designation	Weight (%)
Participação presencial	10,00
Teste	60,00
Trabalho escrito	30,00
Total:	100,00

Eligibility for exams

Approval is obtained with a final grade equal or superior to 10.

Calculation formula of final grade

The final grade results of the average grades obtained in its three components, with the weights set as follows: final exam - 60%; working group - 30%; attendance and participation - 10%. The approval is dependent on obtaining a minimum grade of 7.5 in the final exam. Alternatively, students may choose to take only the final exam.