Course #
International Policy
Finance & Policy

This course is about economic policymaking, with a focus on fiscal and monetary policy. It is structured around six topics: (i) challenges of fiscal adjustment programs; (ii) implementing fiscal rules; (iii) interactions between fiscal and monetary policies; (iv) inflation targeting regimes; (v) adjusting to shocks through monetary policy; and, (vi) financial programming. For each section, we will begin with a review of some materials that give the student a broad perspective on the state-of-the-art knowledge in the particular topic, before turning to the specific and practical policy issues. The course aims to give students: (i) a good understanding on what policymakers should do in each policy area covered (the normative aspect); (ii) a sound explanation on why policies are not always optimal and, many times, deviate from the desirable course of action, emphasizing the obstacles for achieving optimality (for example, political constraints). Case studies will be drawn from recent country experiences.