New Era of Fiscal Councils: The Case of Europe
This course will introduce students to the design and implementation of modern fiscal frameworks with a special emphasis on the euro area. The current explosion of the number of independent fiscal institutions (fiscal councils) worldwide reflects an emerging consensus among economists that independent fiscal watchdogs might play an important role in ensuring sustainability and counter-cyclicality of fiscal policy.
The primary goal of this course is to emphasize the importance of sound institutions in fiscal policymaking. The Great Recession and the subsequent sovereign debt crisis in Europe have uncovered a number of fault lines in fiscal theory and practice. Students in this course will learn how independent fiscal institutions embedded in a modern fiscal framework might help to address some of the major shortcomings, both in theory and in policy (similarly as independent central banks did in monetary policy in the last 3 decades). Students will also be introduced to the current debate on the future of the euro area.
Final (written) exam 50%
Presence and activity 15%
Essay (by mid-March, max 10 pages) 35%
Introduction to macroeconomics