Macroeconomics II - Period 1

In recent years, policy makers in Europe and around the world have been confronted with decisions about fiscal policy that raise important questions. Was fiscal austerity necessary or misguided? Is fiscal stimulus actually effective in recessions? Are current levels of government debt too high or is this the time for more public investment? Do tax cuts boost growth? What policy makers believe the answer to these questions to be will shape macroeconomic policy in the future, and become especially critical when the next recession strikes.

You will put yourself in the shoes of a policy consultant who has been asked to advise the European Commission on the current fiscal policy situation of one of one European country. We will choose the country based on current developments. In 2018 the course focused on Italy. You will start by providing advice based on your current knowledge and understanding of macroeconomics gained in previous courses. You will reflect on how far this takes you in providing satisfactory advice, and which issues you need to understand better. You will then dig more deeply into the existing empirical and theoretical research by macroeconomists relevant for these issues, reflect on how convincing this research is, and use the findings from this research to develop more satisfactory advice.

Vrije Universiteit Amsterdam (VU Amsterdam) awards credits based on the ECTS system. Contact hours listed under a course description may vary due to the combination of lecture-based and independent work required for each course therefore, CEA's recommended credits are based on the ECTS credits assigned by VU Amsterdam. 1 ECTS equals 28 contact hours assigned by VU Amsterdam.