Economic Policy

Code:

2EAE03

Acronym:

PE

Keywords
Classification	Keyword
OFICIAL	Economics

Instance: 2020/2021 - 1S

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	43	Syllabus - 2015	1	-	4	28	108

Teaching language

Portuguese

Objectives

This course aims to show how the government, through stabilization policies can affect the main 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 effects that may operate through hysteresis mechanisms.

Learning outcomes and competences

At the end of the course, students should be able to:

• Identify the main macroeconomic policy instruments and their effects.
• Describe how those instruments were applied after the recent financial crisis, and how they can be used to stabilise the economy following the COVID-19 pandemic.
• Identify the persistence mechanisms of crisis and macroeconomic policies.

Working method

Presencial

Pre-requirements (prior knowledge) and co-requirements (common knowledge)

Knowledge of macroeconomics at the undergraduate level.

Program

1. The Dynamical stochastic General Equilibrium Model

1. Assumptions
2. The problem of the unrealistic assumptions and the predictive power of the model
3. The model in the context of the recent financial crisis

2. The Presence of Hysteresis in the Dynamics of Employment/ Unemployment

1. The concept of hysteresi
2. The Micro foundations
3. The Empirical evidence

3. The Role of Monetary Policy

1. The monetary policy of the ECE
2. The non-conventional measures of monetary policy
3. The reaction of the ECB to the recent financial crisis
4. The reaction of the ECB to the COVID-19 pandemic

4. The Role of Fiscal Policy

1. The non-Keynesian effects of monetary policy
2. The value of the fiscal multipliers and the effects of fiscal policy
3. The fiscal policy in the context of the recent financial crisis
4. The fiscal policy in the context of the COVID-19 pandemic

Mandatory literature

Mota Paulo R. Tavares; Austeridade expansionista. ISBN: 978-972-40-7002-5
Fernandes Abel Luís da Costa; A teoria e a política monetária na actualidade. ISBN: 978-972-40-5314-1

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 with final exam

Assessment Components

Designation	Weight (%)
Teste	100,00
Total:	100,00

Amount of time allocated to each course unit

Designation	Time (hours)
Estudo autónomo	0,00
Frequência das aulas	0,00
Total:	0,00

Eligibility for exams

Alternative 1 (distributed assessment): two tests

 

Alternative 2: final exam.

Calculation formula of final grade

Alternative 1 (distributed assessment): two test, each one with a a weight of 50%.

 Alternative 2: classification of the final exam.

Classification improvement

According to the  "Regulamento de Avaliação de Discentes"