Economic Policy  Sommer 2019  

Economic Policy

Lecturer: Prof. Dr. Gunther Schnabl
Tutor: Nils Sonnenberg
Start: 04.04.2019
Date: Thursday, 11:15 - 12:45
Room: SR 13
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 Failure04.04.19
2.Keynesian Demand Stimulus11.04.19
3.Time Inconsistency and Rules in Economic Policy18.04.19
4.Monetary Policy and Credit Cycles25.04.19
5.Asymmetric Monetary Policy and Financial Instability02.05.19
6.Fiscal Implications of Asymmetric Monetary Policy09.05.19
7.International Implications of Low Interest Rate Policies16.05.19
8.Sterilization of Surplus Liquidity in Emerging Markets
9.Global Imbalances06.06.19
10.Intra-European Imbalances 13.06.19
11.Financial Repression20.06.19
12.Long-term Implications of Low Interest Rate Policies27.06.19
Questions and Answers04.07.19
Gastvortrag: Prof. Dr. Justus Haucap (Heinrich-Heine-University Düsseldorf): "Macht, Markt und Wettbewerb: Was steuert die Datenökonomie?", 15.00-17.00 Uhr, Raum: SR4. 04.07.19
Written Examination (Sample Exam)

letzte Änderung: 10.03.2020