Fiscal Theory and Policy
| Type of study | Follow-up Master |
|---|---|
| Language of instruction | English |
| Code | 114-0544/03 |
| Abbreviation | FTP |
| Course title | Fiscal Theory and Policy |
| Credits | 4 |
| Coordinating department | Department of Economics |
| Course coordinator | doc. Ing. Lenka Johnson Filipová, Ph.D. |
Subject syllabus
1. FISCAL POLICY IN CLOSED ECONOMY – THE IS-LM ANALYSIS
- Crowding-out effect of government purchases
- Fiscal policy multiplier
- Interaction of monetary and fiscal policy in the IS-LM model
2. FISCAL POLICY IN OPEN ECONOMY – THE IS-LM-BP ANALYSIS
- Efficiency of fiscal policy in alternative exchange rate regimes
- Efficiency of fiscal policy in alternative levels of capital mobility
3. BUDGET DEFICIT AND ITS MEASUREMENT
- budget deficit – its possible causes and consequences
- Structural and cyclical deficit and their measurement
- Alternative measures of fiscal imbalance
4. THEORY OF GOVERNMENT DEBT
- Government debt, its causes and consequences
- Domestic debt and its consequences.
- Foreign debt and its consequences
5. RICARDIAN EQUIVALENCE.
- Debt and taxes as equivalent methods of financing government expenditures
- Permanent income – life cycle hypothesis application, interteporal choice
- Ricardian equivalence and economic policy
6. FISCAL ASPECTS OF SUPPLY SIDE ECONOMICS
- Theory of incentives (P. C. Roberts).
- Theory of Laffer curve
- Fiscal experiments in the 80’s (M. Thatcher, R. Reagan) and their results
7. THEORY AND EMPIRY OF FISCAL FEDERALISM
- Neokeynesian conception of fiscal federalism (R. Musgrave).
- W. Oates‘ approach of fiscal federalism
- Fiscal policy in integrating Europe (EU, EMU).
8. INTERACTION OF MONETARY AND FISCAL POLICY.
- Fiscal aspects of monetary policy
- Seigniorage as a source of budget revenues
- Intertemporal budget constraint and „weak version“ of fiscal theory of price level
9. LONG-RUN SUSTAINABILITY OF PUBLIC FINANCE
- Demographic changes and fiscal sustainability
- Role of mandatory expenditures in public finance
- Crowding-out effect of government purchases
- Fiscal policy multiplier
- Interaction of monetary and fiscal policy in the IS-LM model
2. FISCAL POLICY IN OPEN ECONOMY – THE IS-LM-BP ANALYSIS
- Efficiency of fiscal policy in alternative exchange rate regimes
- Efficiency of fiscal policy in alternative levels of capital mobility
3. BUDGET DEFICIT AND ITS MEASUREMENT
- budget deficit – its possible causes and consequences
- Structural and cyclical deficit and their measurement
- Alternative measures of fiscal imbalance
4. THEORY OF GOVERNMENT DEBT
- Government debt, its causes and consequences
- Domestic debt and its consequences.
- Foreign debt and its consequences
5. RICARDIAN EQUIVALENCE.
- Debt and taxes as equivalent methods of financing government expenditures
- Permanent income – life cycle hypothesis application, interteporal choice
- Ricardian equivalence and economic policy
6. FISCAL ASPECTS OF SUPPLY SIDE ECONOMICS
- Theory of incentives (P. C. Roberts).
- Theory of Laffer curve
- Fiscal experiments in the 80’s (M. Thatcher, R. Reagan) and their results
7. THEORY AND EMPIRY OF FISCAL FEDERALISM
- Neokeynesian conception of fiscal federalism (R. Musgrave).
- W. Oates‘ approach of fiscal federalism
- Fiscal policy in integrating Europe (EU, EMU).
8. INTERACTION OF MONETARY AND FISCAL POLICY.
- Fiscal aspects of monetary policy
- Seigniorage as a source of budget revenues
- Intertemporal budget constraint and „weak version“ of fiscal theory of price level
9. LONG-RUN SUSTAINABILITY OF PUBLIC FINANCE
- Demographic changes and fiscal sustainability
- Role of mandatory expenditures in public finance
E-learning
Literature
ROSEN, Harvey and Ted GAYER, Public Policy (Global 10th Edition), 2014. 700p. ISBN 978-00-7715-469-1.
KNILL, Christoph a Jale TOSUN. Public Policy: A New Introduction. 2nd ed. Bloomsbury Publishing, 2020. 296 p. ISBN 978-11-3757-329-2 .
ALESINA, Alberto a Francesco GIAVAZZI. Fiscal policy after the financial crisis. Chicago: University of Chicago Press, 2013. 585 p. ISBN 978-02-2601-844-7.
KNILL, Christoph a Jale TOSUN. Public Policy: A New Introduction. 2nd ed. Bloomsbury Publishing, 2020. 296 p. ISBN 978-11-3757-329-2 .
ALESINA, Alberto a Francesco GIAVAZZI. Fiscal policy after the financial crisis. Chicago: University of Chicago Press, 2013. 585 p. ISBN 978-02-2601-844-7.
Advised literature
AYUSO-CASALS, Joaqium. Policy instruments for sound fiscal policies: Fiscal rules and institutions. Basingstoke: Palgrave Macmillan, 2009. 356 p. ISBN 978-9-279-09310-4.
HANSEN, Alvin Harvey a Seymour Edwin HARRIS. Monetary theory and fiscal policy. Chicago: Papamoa Press, 2018. 219 p. ISBN 978-1-78912-741-6 .
MANKIW, Gregory. Macroeconomics. 10th edition. New York: Macmillan International Higher Education, 2019. ISBN 978-1-319-24358-6.
HANSEN, Alvin Harvey a Seymour Edwin HARRIS. Monetary theory and fiscal policy. Chicago: Papamoa Press, 2018. 219 p. ISBN 978-1-78912-741-6 .
MANKIW, Gregory. Macroeconomics. 10th edition. New York: Macmillan International Higher Education, 2019. ISBN 978-1-319-24358-6.