Economic Policy

Code:

LEC407

Acronym:

PE

Keywords
Classification	Keyword
OFICIAL	Economics

Instance: 2005/2006 - 2S

Active?	Yes
Responsible unit:	Grupo de Economia
Course/CS Responsible:	ECONOMICS

Cycles of Study/Courses

Acronym	No. of Students	Study Plan	Curricular Years	Credits UCN	Credits ECTS	Contact hours	Total Time
ECO	354	Official Curricular Structure since 2004	4	2		-

Objectives

Using as input the background provided by courses taken previously in the areas of macroeconomics, international economics, and money and finance, the main purpose of the course in Economic Policy is the understanding of current public debates on monetary and budgetary policies as well as on some structural policies. Particular attention is devoted to the case of Europe.

Program

1. The theory of economic policy
2. Structural issues in the conduct of macroeconomic policy
2.1. The exchange rate system
2.2. The efficiency of the markets and supply side policies
2.3. The limits of demand management
2.4. Liberalism vs interventionism
3. Monetary policy
3.1 Inflation as the main target of monetary policy
3.2. Central bank independence
3.3. Monetary policy rules
3.4. The European System of Central Banks
3.5. Instruments of monetary policy
3.6. The transmission mechanism of monetary policy
4. Fiscal policy
4.1. Instruments of fiscal policy
4.2. The transmission of fiscal policy
4.3. Fiscal sustentability
4.4. The Stability and Growth Pact of the European Union
5. Interdependence of macroeconomic policies
5.1. Reacting to common shocks
5.2. International coordination of policies; the European Monetary Union case

Main Bibliography

- "Macroeconomics: A European Text"; Michael Burda and Charles Wyplosz, Oxford University Press, 4th edition (2005)
- "Euro: Análise Macroeconómica", João Loureiro, Vida Económica (1999)
- "The Monetary Policy of the ECB"; European Central Bank (2004)
- “Economia e Finanças Públicas”, Paulo Trigo Pereira e Outros, Escolar Editora, 2005 [Capítulos 13, 14 e 15]

Complementary Bibliography

- "Introdução à Política Económica", Jacques Généreux, Editorial Estampa, 1995
- "Política Económica: Metodologia, Concepção e Instrumentos de Actuação", João Ferreira do Amaral, Edições Cosmos, 1996
- "The Economics of European Integration", R. Baldwin and C. Wyplosz, McGraw-Hill, 2004

Teaching methods and learning activities

Lectures based on case studies and discussion of texts taken from newspapers.

Evaluation Type

Evaluation with final exam