Economic Policy  Sommer 2018  

Lecturer: Prof. Dr. Gunther Schnabl
Tutor: Sophia Latsos
Start: 12.04.2018
Date: Thursday, 11:15 - 12:45
Room: SR 17
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 „Möglichkeiten und Grenzen der Geldpolitik“ in Eltville or „Finance in Developing and Emerging Markets“ 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 Failure12.04.18
2.Keynesian Demand Stimulus19.04.18
3.Time Inconsistency and Rules in Economic Policy26.04.18
4.Monetary Policy and Credit Cycles03.05.18
Guest Speaker: Dr. Jörg Krämer (Chief economist of Commerzbank AG) on  „Eine neue geldpolitische Strategie für die EZB“, 19:00 - 21:00, HS 908.05.18
5.Asymmetric Monetary Policy and Financial Instability17.05.18
6.Fiscal Implications of Asymmetric Monetary Policy24.05.18
7.International Implications of Low Interest Rate Policies04.06.18
8.Sterilization of Surplus Liquidity in Emerging Markets07.06.18
9.Global Imbalances14.06.18
10.Intra-European Imbalances (15:15-16:45, SR5 (I127))02.07.18
11.Financial Repression05.07.18
12.Long-term Implications of Low Interest Rate Policies12.07.18
Questions and Answers12.07.18
Written Examination (Sample Exam)27.07.18

letzte Änderung: 12.06.2019