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KMPA 2850 - Macro Economics of Public Policy

Type d'enseignement : Seminar

Semester : Autumn 2018-2019

Number of hours : 24

Language of tuition : English


We will present general toolbox of macroeconomists. Thus a general and good textbook as Macroeconomics, by Olivier Blanchard (a recent edition), will be useful.

Course Description

The goal of this course is to provide students with a general understanding of macroeconomic tools to understand public policies, in the short and the long run. The main focus will be about macroeconomic stabilization. How to reduce fluctuations in unemployment? How to keep inflation under control? Should we try to manage exchange rates? A recent focus will be put on the financial and European crisis?


  • RAGOT, Xavier (Directeur d'études et Président de l'OFCE)
  • WAYSAND, Claire (Inspectrice générale des finances)

Pedagogical format

The course is divided in two parts. X. Ragot (6 lectures) 1/ Growth, Wealth, and inequalities - The Wealth of Nations : Measuring growth : GDP and beyond - Inequalities : Where and how much? 2/ Where growth comes from? - The long-run : Growth decomposition (Solow) - Reforms : Level and growth effect 3/ Managing the business cycle - Fiscal multipliers - Fiscal and Monetary policy over the business cycle (IS/LM) 4/ Finance, financial regulation and crisis - Trends in credit, banks and leverage 5/ Exchange rate and capital flows - Exchange rate policies - International finance P. Andrade (6 lectures) 1/ Aggregate supply (2 lectures) - The WS-PS model - Discussion: Real Wage ; Labor productivity and Unemployment: some differences between Euro Area countries - Discussion: structural reforms on goods and labor markets 2/ The AS-AD model (2 lectures) - Aggregate demand and intertemporal choices : the role of expectations - Dynamics in the AS-AD model : Phillips curve, NAIRU and wage/price spiral - Discussion: inflation-output trade-off in the Euro-area 3/ Macroeconomic policies (2 lectures) - Fiscal and monetary policy in the AS-AD: the role of expectations; the risk of de-anchoring - Discussion: the Euro Area 2011-2013 crisis; the role of monetary and fiscal policies - Monetary policy in unconventional times - Discussion: the impact of QE in the Euro area

Required reading

Macroeconomics, by Olivier Blanchard (a recent edition)