Economic Policy  Sommer 2020  

Economic Policy

Lecturer: Prof. Dr. Gunther Schnabl
Tutor: Nils Sonnenberg
Start: 09.04.2020
Date: Thursday, 11:15 - 12:45
April lectures: Online via Zoom
Room: SR 14
Language: English


This course is on economic policy in theory and practice with a focus on financial-crisis related economic policy issues in both the advanced and emerging market economies. We discuss topics such as fiscal demand stimulus, the link between monetary policy and credit booms, problems of debt sustainability and liquidation as well as international aspects of the recent crisis and economic policy responses.

Main Texts

Hayek, Friedrich August von 1931 [1935]: Prices and Production, Augustus M. Kelly, Publishers, New York.
Schnabl, Gunther 2016: Central Banking and Crisis Management from the Perspective of Austrian Business Cycle Theory, CESifo Working Paper Series No. 6179.


This course is part of the module International Economic Policy. Besides this course the module comprises a class in European Integration as well as a seminar. Students can chose between participation in the seminars „Multilateralismus“ in Eltville or „Development Economics“ in Leipzig. Grading will be based on an exam covering the two courses worth two-thirds of your grade. For the seminar you will write a paper worth one third of your final grade.

Contents and Slides

1. Market Failure

April lectures will be held online via Zoom: For lecture EP1 click here.

Instructions can be found here.

2.Keynesian Demand Stimulus23.04.20
3.Time Inconsistency and Rules in Economic Policy30.04.20
4.Monetary Policy and Credit Cycles07.05.20
Gastvortrag: Geld und Herrschaft - Dr. Thorsten Polleit11.05.20
5.Asymmetric Monetary Policy and Financial Instability14.05.20
6.Fiscal Implications of Asymmetric Monetary Policy28.05.20
7.International Implications of Low Interest Rate Policies04.06.20
8.Sterilization of Surplus Liquidity in Emerging Markets11.06.20
9.Global Imbalances18.06.20
10.Intra-European Imbalances 25.06.20
11.Financial Repression02.07.20
12.Long-term Implications of Low Interest Rate Policies09.07.20
Questions and Answers16.07.20
Written Examination (Sample Exam)

letzte Änderung: 07.04.2020