Economic system and public policy

Aims of the course

The course develops basic knowledge of the economic system and macroeconomic policy. The aim of this course is to acquaint students with the fundamental economic and political tools for the analysis of the functioning of economic and public policy. Students will be able to judge which political and economic policies and measures make it possible to find appropriate social responses to the challenges of modern times.

Course syllabus

1. THE ECONOMIC SYSTEM AND MACROECONOMIC POLICIES
- Economic systems, market and state. Limited functioning of the market and the state. The role of economic policy.
- Definition and classification of economic systems.
- Macroeconomic solutions in the XX. century and the role of economic policy.

2. MEASUREMENT OF ECONOMIC ACTIVITY
- Traditional economic criteria.
- The complexity of (non)economic criteria.
- Measurement of growth, cyclicality, unemployment, inflation.
- Criteria and measurement of inequality and life satisfaction.

3. MACRO-ECONOMIC MODELING AND ECONOMIC SCHOOLS
- Different economic models and macroeconomic schools
- Caps and limitations of models and schools.
- Expectations and economic policy

4. ECONOMIC POLICIES
- Monetary policy.
- Incomes policy and structural policy.
- Development and structural policy.
- External trade policy.

5. FISCAL POLICY AND PUBLIC FINANCE
- Public and private sector
- Taxes and tax principles.
- Public expenditures and public finance balances.
- Fiscal policy.
- Budget deficit and public debt.
- Heavily indebted countries and solutions.

6. SUSTAINABLE DEVELOPMENT AND CHALLENGES OF LONG-TERM GROWTH
- Economic policies promoting economic growth.
- Limits to growth. Sustainable growth. Green keynesianizem.
- Economic growth and inequality.
- Reasons for failure of individual countries.
- Green tax and budget reform.

7. SHORT-TERM FLUCTUATIONS AND ECONOMIC CYCLE
- Economic and business cycles. Real business cycles.
- Unemployment and inflation.
-Economic policy of stabilization and cyclical movement.
- EU and anticyclical policy issues.

8. CENTRAL SOCIO-ECONOMIC CHALLENGES AND POLICIES
- Fiscal policy and problem of public finance sustainability
- Monetary policy and price stabilization
- Incomes policy and inequality
- Development policy and the problem of unemployment
- External trade policy and global competitiveness
- Regional policy and cohesion funds
- Social policy and transformation of the social state
- Environmental policy and global climate changes
- Development policy and poverty
- Health policy and pandemia
-Imigration/security/integration policies and demographic transition.

9. HETERODOX APPROACH AND ANALYSIS OF FINANCIAL CRISIS
- Heterodox approaches and divergence of policies
- Financialization and financial crisis. Minsky’s moment.
- Regulation and global coordination of Big Recession (2008-2011). USA and EU policy response.
- Dilemas regarding the monetary coordination and fiscal consolidation.

10. THE POLITICAL-ECONOMIC TOOLS TO THE ANALYSIS OF ECONOMIC AND PUBLIC POLICY
- Public choice theory. Private and public interests.
- Moral hazard problem and market society transformation.
- Procedure, competitiveness and cooperativeness of political decision-making in a market society.
- Economic policy and institutional design problem (EU case).
- Political legitimacy and credibility of economic policy

11. COMPARATIVE ANALYSIS OF ECONOMIC POLICY IN SLOVENIA
- National and European institutional framework for governance of economic policy in Slovenia.
- Different models and approaches of economic policy management in Slovenia.
- The efficiency of solving specific problems. Successful examples at the level of other countries.
- Economic / social / environmental performance measures
- Time and administrative expenses for introduction.
- Applying the principle of public-private partnerships and cooperation with civil society in the policy implementation.

Course director(s)