Microeconomics & Public Policy

To design and manage successful economic policy, professionals need a sophisticated command of modern microeconomics. This course strengthens and extends understanding of microeconomic theory, and gives practice applying it. We study the relationship between market structure and market performance, exploring conditions under which policy intervention can improve market performance, and when it can be counter-productive. Both distributional and efficiency aspects of intervention are stressed. An introduction to formal strategic analysis is included, along with its application in the modern theory of auctions.

• R 1:45 p.m.-3 p.m.
• T 5:10 p.m.-7 p.m.
• Instructor: Jan Svejnar
  Wikipedia h-index: 49 Info
• 4 points

Macroeconomic Policy Management

Macroeconomic Policy Mgmt

This course provides students with a structured framework for analyzing major macroeconomic policy challenges in advanced and emerging economies. It covers long-run growth dynamics, income distribution, general equilibrium adjustment to shocks, and the design and limits of monetary and fiscal policy. Emphasis is placed on modern macroeconomic thinking rooted in expectations, dynamic behavior, and solid micro-foundations. Students will study models such as Solow growth, Real Business Cycle, and New Keynesian frameworks to understand issues like secular stagnation, inflation, sovereign debt, and financial sector crises. The course integrates theory with current policy debates, drawing on recent global events and empirical evidence. It is designed to build intuitive understanding and disciplined policy analysis, with technical content supported by pre-recorded videos and recitations. Students will complete short analytical assignments, a midterm, and a final exam, gaining tools to think critically and constructively about macroeconomic policy in both national and international contexts.

• TW 3:10 p.m.-5 p.m.
• R 5:10 p.m.-7 p.m.
• Instructor: Guillermo Mondino
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• 4 points

Political Economy of Finance

This course provides an introduction to the political economy of finance, trade, and international monetary policy, presenting both theoretical perspectives and more policy-oriented concerns.  The course requires no knowledge of formal economic models, but it does presume familiarity with basic concepts in open economy macroeconomics and finance. Students without this background may find several sections of the course very difficult. The course has three main sections.  The first examines the political economy of the global monetary system.  We begin by surveying the evolution of international monetary arrangements from the gold standard period to the present day.  Then we analyze the difficulties posed by floating rates and capital mobility as well as the global imbalances that have been frequent features of contemporary times.  In addition, we examine the Euro crisis and trace its origins to the establishment of the monetary union. The second section examines the political economy of trade policy, focusing on its links to international monetary affairs. In addition, it explores commercial policy and the recent turn to protectionism led by the United States. The final section considers financial crises, with a special focus on the Asian financial crisis of 1997/98 and 2007/08 global crisis that had its origins in the United States.

• W 5:10 p.m.-7 p.m.
• Instructor: Arvid J Lukauskas
  CULPA: 2 Info
• 3 points

Microeconometrics

This course introduces students to multiple regression methods for analyzing data in economics and related disciplines. Extensions include regression with discrete random variables, instrumental variables regression, analysis of random experiments and quasi-experiments, and regression with time series data. The objective of the course is for the student to learn how to conduct and critique empirical studies in economics and related fields. Accordingly, the emphasis of the course is on empirical applications. The mathematics of econometrics will be introduced only as needed and will not be a central focus.

• TR 10:30 a.m.-11:45 a.m.
• M 1:10 p.m.-3 p.m.
• Instructor: Alan S Yang
  CULPA: 5 Info
• 4 points

Financial Stability Monitoring

This course focuses on financial stability monitoring and evaluation as an essential discipline for macroeconomic, financial and prudential policymakers.  We begin by defining financial stability, examining the dynamic behavior of macroeconomic models with developed models of the financial sector, and considering conceptual frameworks for assessment of threats to financial stability.  From there, we identify key signatures of financial instability, how they can be measured and combined in a monitoring system, and how such measurement systems signal changes in the level of systemic risk.  Through case studies, class participation and two assignments, you will interpret these measures, develop questions for further investigation and assess the nature and extent of systemic risk. You will be asked to write two policy memoranda:  the first proposing and justifying a small set of financial stability indicators for monitoring; and the second assessing the risk of financial instability in indicators for that (or another) country, in indicators of vulnerabilities with strong network effects, and in unconventional risks such as cyber or widespread trade tensions.  Both assignments emphasize developing timely and persuasive analysis that prompts policymakers to consider the need for action to preserve financial stability.

• M 10 a.m.-11:50 a.m.
• Instructor: Christine Cumming
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• 1.5 points

Macroprudential Policy

This short course will start with a brief overview of the post-crisis reforms and focus on the gap that macroprudential policy was meant to fill: the lack of a system-wide perspective on financial stability. It will explore the conceptual and practical difficulties in defining financial stability and setting an operational target for policy; provide a high-level overview of the tools for monitoring systemic risk, including stress tests, as well as of the various macroprudential policy instruments available to mitigate it; and discuss the governance challenges in setting up an institutional framework for macroprudential policy. The course will review how the major advanced economies (US, UK, Euro area) have tackled these issues, as well as discuss aspects of macroprudential policy specific to emerging market (EM) and developing countries. Lastly, the course will examine recent and emerging challenges to financial stability, such as the COVID-19 pandemic, cyber risk, and the transition to a low-carbon economy; discuss the experience so far with macroprudential policy responses to these challenges; and assess the adequacy of the existing tools to address them.

This course will have a practical focus, emphasizing the perspective and actual experience of policymakers. By the end of this course, students should have a good understanding of the concepts of financial stability and systemic risk and their measurement, as well as how they are applied in the real world; the difference between the micro- and macro-prudential approach to financial regulation; the architecture and working of macroprudential policy in a variety of country circumstances; the role of central banks and the associated political economy challenges; and emerging risks to financial stability. Students will be encouraged, including through class discussions and assignments, to approach these issues from the standpoint of policymakers.

• T 1:10 p.m.-3 p.m.
• Instructor: Dimitrios Demekas
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• 1.5 points