ECONOMIC POLICY
COURSE CONTENTS
The course covers the main areas of economic policy in a market economy, presenting the basic tools necessary to understand the logic and impact of modern economic policy. Emphasis is put on the interests and behavior of various actors and insitutions that shape economic policy in a democratic society. Special attention is devoted to policies for achieving the goal of sustainable development. The role of social capital as development factor is also considered. The EU and global policy frameworks are taken into account. Thereby, the normative prescriptions are confronted with real life political and economic constraints.
PROGRAMME OF LECTURES
Teachers:
-Janez Šušteršič (JS), Associate Professor, Faculty of Management Koper, Slovenia
-Olga Janikowska (OJ), Assistant Professor, Katowice School of Economics, Poland
-Valentina Dimitrova-Grajzl (VDG), Assistant Professor, Central European University, Budapest, Hungary
Lecture 1, MON June 30
Introduction and basic concepts
General introduction (JS)
economic policy in a democratic society
Importance of »non-economic« goals and factors (OJ)
sustainable development as a policy goal
social capital as a factor of development
Lecture 2, TUE July 1
Macroeconomic policy
Fiscal policy (JS)
fiscal policy and the business cycle
fiscal policy and institutions
Monetary policy (JS)
monetary policy and the business cycle
monetary policy and inflation
credibility of monetary policy
Lecture 3, WED July 2
Macroeconomic policy in the European Monetary Union
Slovenia's experience with the entry into the Euro zone
Guest lecture: Boštjan Vasle, director of IMAD (Institute of Macroeconomic Policy and Development)
Coordination of macroeconomic policies in the EMU (JS)
theoretical arguments for coordination
Stability and growth pact and its recent reform
importance of structural reforms for the EMU
Lecture 4, THU July 3
Sustainable development policy
Conceptual framework (OJ)
concepts and indicators of sustainable development
sustainable development policy in theory
spiritual dimensions of sustainable development
Sustainable development policy in practice (OJ)
sustainable development policy in the EU
global sustainable development policy agenda
Lecture 5, FRIJuly 4
Sustainable development in practice
A study-visit to a Slovenian company (OJ, JS)
Lecture 6, MON July 7
Institutions for good governance and growth
Institutions and growth (VDG)
unveiling the causes of economic growth: from capital accumulation, to technology, to institutions
first order economic principles (universal) – secure property rights, macroeconomic stability, integration in the world economy, social cohesion and political stability
diversity of economic policies and institutions to achieve first-order-economic principles (country-specific) – can institutional monocropping work?
Institutions and good governance (VDG)
the quality of government – control of corruption, bureaucratic efficiency, public good provision, accountability
legal framework for successful development – public vs. private enforcement of legal rules, optimal specificity of legal rules (rules vs. standards), judiciary, legal transplants
example: post-communist transition as a process of institution-building
Lecture 7, TU July 8
Development policy in a democratic society
Social capital as a factor of development (OJ)
concepts and measurements of social capital
importance of social capital for development
Globalisation, democracy and development (OJ)
globalisation – chance for welfare or poverty of nations
global governance versus democracy
Lecture 8, WE July 9 (OJ, JS):
Exam
-presentation of the essays and participation in debate
-oral examination
STUDENT OBLIGATIONS
- reading the course literature before the course beginning,
- attending the lectures during the course,
- writting an essay on a selected topic; choice will be offered between
- experience of Euro-introduction in Slovenia and challenges for new members
- sustainable development policy in practice – essay based on a visit to a Slovene company during the course time
- presentation of the essay and participation in debate (at the last course lecture)
- oral examination (at the last course lecture)
COURSE LITERATURE
Required reading:
Begg, David and Damian Ward (2007): Economics for Business, 2nd edition. McGraw-Hill. Section 4 and 5 (pp. 192-347).
WCED (1987): Our Common Future. World Commission on Environment and Development, OxfordUniversity Press, Oxford.
Rodrik, Dani (2000). "Institutions for High-Quality Growth: What They Are and How to Acquire Them." Studies in Comparative International Development, 35:3, pp. 3-31.
Supplementary reading:
Johnson S. P. (1993) The Earth Summit. The United Nations Conference on Environment and Development (UNCED). Graham & Trotman/Martinus Nihoff, London–Dordrecht–Boston.
Ayres R. U., SimonisU. E. (eds.) (1994) Industrial Metabolism. Restructuring for Sustainable Development. United NationsUniversity Press, Tokyo.
Olson, Mancur (1984). The Rise and Decline of Nations: Economic Growth, Stagflation, and Social Rigidities. Yale University Press. Chapter 1.
Evans, Peter (2004). Development as Institutional Change: The Pitfalls of Monocropping and the Potentials for Deliberation. Studies in Comparative International Development, 38:4, pp. 30-52
López-de-Silanes, Florencio, Rafael La Porta, Andrei Shleifer, and Robert Vishny (1999). “The Quality of Government”. Journal of Law Economics and Organizations, 15, pp. 222-279.
Posner, Richard A. (1998). "Creating a Legal Framework for Economic Development." The World Bank Research Observer, 13:1, pp. 1-11.
EXAMINATION
The final mark is the combination of the mark for the essay (50 %) and for the oral examination (50 %). Oral examination will cover all topics presented at lectures and in the required readings. Detailed instructions for essays will be given at the beginning of the course.