Economic Policies

Basic concepts of Microeconomics and Macroeconomics.

1) Verbal methodologies (say), making use of pedagogical resources: Exhibition, Explanation and Dialogue;
2) Intuitive Methodologies (show), making use of pedagogical resources: Demonstration, Audiovisuals and Written Texts;
3) Active Methodologies (to do), making use of pedagogical resources: Individual Works, Works in Group and Case Study.

At the end of the course, it is expected that the student will be qualified to:

a) Understand the portuguese public policies and the functionality of government intervention in the
economy;
b) understand the Central Banks’ decisions e international monetary system;
c) understand the components of Economic Policy;
d) be aware of the Portuguese and international economic policy challenges.;
e) Be able to understand how financial crises behave.

1. The normative theory of economic policy
  1.1. Planning
  1.2. Economic policy objectives
  1.3. The instruments of economic policy

2. Principles for Public Intervention
2.1. General considerations
2.2. Intervention for reasons of efficiency
2.3. Intervention for reasons of social justice
2.4. Efficiency vs Equity

3. Public policies in a context of uncertainty
  3.1. asymmetric information
  3.2. Externalities: public policies and their effects
  3.3. Inequality and social welfare

4. Fiscal policy
  4.1. State Budget
  4.2. Policy Budget
  4.3. Public Finance Sustainability
  4.4. European Policy Budget
  4.5. Three ways to stabilize the public debt

5. Monetary policy
  5.1. Central banks and the monetary economy
  5.2. Instruments and monetary policy objectives
  5.3. Channels of Monetary Policy Transmission
  5.4. Monetary system

6. Foreign-exchange policy
  6.1 Exchange rate regimes
  6.2 Exchange rate Determinantion
  6.3 Theory of optimum currency areas.

7. Financial sector and crises

NAO

 – Abreu, M., Afonso, A., Escária, V. & Ferreira, C. (2022). Economia Monetária e Financeira. Escolar editora (4ª.
Ed.)

 – Acocella, N. (2005). Economic policy in the age of globalization. Cambridge University Press (1st Ed.)

 – Burda, M. & Wyplosz, C. (2017). Macroeconomics: An European Text. Oxford University Press (4th Ed.).

 – Carlin, W. & Soskice, D. (2014). Macroeconomics: Institutions, instability, and the financial system. Oxford
University Press.

 – Fernandes, A. & Mota, P. (2017). A teoria e a política monetárias na actualidade. Almedina (4ª. Ed.)

 – Pereira, P. T., Afonso, A., Santos, J., Arcanjo, M. & Cabral, R. (2022). Economia e Finanças Públicas. Escolar
Editora ( 6ª. Ed.).

– Pilbeam, K. (1998). International Finance. Macmillan Business (2nd Ed.).

 – Santos, J., Braga, J., Teixeira M., & Aubyn, M. (1994). Macroeconomia: Exercícios e teoria. McGraw Hill de
Portugal (1ª. Ed.).