Research projects on Review of Fiscal and Monetary Policies, 1970-2014
China economy is country of subject: Fiscal and Monetary Policies in Developing Countries
Fiscal and Monetary Policies in the MF Model
• Required Readings: Bird, Graham (2007) An Introduction to International Macroeconomics (Houndmills, Basingstoke: Palgrave MacMillan):
? Policy Analysis Within the IS-LM_BP Model: With Fixed Exchange Rates (pp. 108-113).
? Policy Analysis Within the IS-LM_BP Model: With Flexible Exchange Rates (pp. 113-120).
Learning Objectives:
o The effectiveness of fiscal and monetary policies with fixed exchange rates.
o The effectiveness of fiscal and monetary policies with flexible exchange rates.
Discussion Questions:
1. What are the advantages of using the MF model to illustrate the implications of fiscal and monetary policies?
2. What are the main constraints of using the MF model to illustrate the implications of fiscal and monetary policies? Fiscal Policies for Development
• Required Readings: Adam, Christopher S. and David L. Bevan (2001) “Fiscal Policy Design in Low-Income Countries”, UNU/WIDER Discussion Paper No. 2001/67 (August); available at: https://economics.ouls.ox.ac.uk/13638/1/uuida34892c1-3663-40e5-9b6a-0537d3b39a3a-ATTACHMENT01.pdf
Learning Objectives:
o How fiscal policies have been used over the last 30 years.
o Why fiscal policies failed to provide long-term growth.
Discussion Questions:
1. What are the main reasons for the increased focus on fiscal policy since 2000?
2. Do you expect expansionary fiscal policy to be effective in the current macroeconomic environment?
3. How would you summarize the key points of Feldstein (2009) in three bullet points (max. 50 words)?
Monetary Policies for Development
• Required Readings: Pollin, Robert, Gerald Epstein and James Heintz (2008) “Pro-Growth Alternatives for Monetary and Financial Policies in Sub-Saharan Africa”, Brasilia, Brazil: International Poverty Centre, Policy Research Brief No. 6 (January); available at:
https://www.ipc-undp.org/pub/IPCPolicyResearchBrief6.pdf
•Learning Objectives:
o The relationships between monetary policy, interest rates and inflation.
o Implications of inflation on current and capital account.
o Implications of high interest rates on capital flows and the exchange rate.
•Discussion Questions:
1. Does expansionary monetary policy cause inflation?
2. Despite the positive impact of high interest rates on capital flows, what is the key problem of high interest rates?
3. How would you summarize the key points of Huang and Wei (2006) in three bullet points (max. 50 words)?