OAGE 2095 - Economic Policies in Emerging Markets Economies

Economic policies, implemented by governments via their Treasury and Central Bank, aim to ensure stable and sustainable development of economies through fiscal, monetary, trade, regulatory, industrial and climate policies. These policies often involve trade-offs, like equity vs. efficiency, short-term stability vs. long-term sustainability.

Implementing economic policies have become more challenging due to socio-political conflicts, climate change and the rise of populism. Historically, emerging market economies (EMEs) faced more macroeconomic and socio-political volatility while advanced economies (AEs) could reduce them benefitting from more robust institutions. However, recent crises in AEs (e.g., debt, inequality, inflation) blur these distinctions, prompting a debate on the relevance of this traditional difference. Are there now crises affecting both EMEs and AEs alike and making their policy challenges and responses more similar?

Learning Outcomes

• Identify and discuss major economic policy challenges in both EMEs and AEs in recent history
• Apply macroeconomic analysis and models to identify best course for policy action
• Analyze macroeconomic data to assess macroeconomic position and potential vulnerabilities
• Evaluate policy options and possible alternative course of policy action
• Justify specific direction for policy action with benefits while identifying its potential risks and costs

Professional Skills

Analytical background and knowledge for designing and assessing economic policies in EMEs but also AEs; Practical experience with macroeconomic policy-making in EMEs, its trade-offs and challenges

Basic knowledge of (a) macroeconomic policies (fiscal and monetary), its operation and transmission channels; (b) international macroeconomics; (c) development / growth strategies and challenges; mostly in EMEs but also AEs

Feedback and grades will be available at: 1) mid-course; 2) end-course after the evaluation of the written paper

One individual written paper (5-10 pgs.) addressing one of the issues of the Course (to pick among the 12 topics of the course’s sessions) – 50% of grade (to be submitted at the end of the last Session of the course)

Oral participation in two policy debates (class divided into teams, around policy choices (2 hours of debate) – 2 x 20% of grade.

• a G20 meeting like policy debate on Trade and Industrial Policy between three groups in the class (the US, China and Europe), using the policy developments announced by the new Trump presidency in the US
• an internal Government cabinet like policy debate using the COVID-19 pandemic as context, between two groups in the class (Treasury and central bank) about the policy responses to the pandemic

Individual oral participation during the 12 sessions of the course – 10% of grade

• In Class Presence: 2 hours a week / 24 hours a semester
• Reading and Preparation for Class: ~2 hours a week / 25 hours a semester
• Research and Preparation for Group Work: ~1 hours a week / 12.5 hours a semester
• Research and Writing for Individual Assessments: ~1 hours a week / 12.5 hours a semester
• Other: data analysis through news reading: ~4 hours a week / 50 hours a semester