Economic Policy  SS 2017  

Lecturer: Prof. Dr. Gunther Schnabl
Tutor: Sophia Latsos
Start: 6.4.2017
Date: Thursday, 11:15 - 12:45 and Wednesday, 15:15 - 16:45 (see schedule below)
Room: SR16 (I315) on Thursdays and SR17 (I374) on Wednesdays
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. 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 Failure06.04.2017
2.Keynesian Demand Stimulus13.04.2017
3.Time Inconsistency and Rules in Economic Policy26.04.2017
4.Monetary Policy and Credit Cycles27.04.2017
5.Asymmetric Monetary Policy and Financial Instability04.05.2017
6.Fiscal Implications of Asymmetric Monetary Policy11.05.2017
7.International Implications of Low Interest Rate Policies18.05.2017
8.Sterilization of Surplus Liquidity in Emerging Markets24.05.2017
9.Global Imbalances31.05.2017
10.Intra-European Imbalances08.06.2017
11.Financial Repression22.06.2017
12.Long-term Implications of Low Interest Rate Policies29.06.2017
Questions and Answers04.07.2017
13.Guest Speaker: Prof. Dirk Baur, University of Western Australia, "Monetary Policy and Gold", 18:00, SR1705.07.2017
Written Examination (Sample Exam)21.07.2017

letzte Änderung: 23.07.2019