Public University of Navarre

Castellano | Academic year: 2017/2018 | Previous academic years:  2016/2017  |  2015/2016 
Bachelor's degree in Economics at the Universidad Pública de Navarra
Course code: 171709 Subject title: INTERNATIONAL ECONOMIC POLICY
Credits: 6 Type of subject: Optative Year: 4 Period: 1º S
Department: Economics
ALAEZ ALLER, RICARDO (Resp)   [Mentoring ] RIOS IBAÑEZ, VICENTE   [Mentoring ]

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Module/Subject matter

Major in Public Economics and Major in Development and Cooperation.



1. The subject offers different frameworks that allow interpreting the causes of the behavior of short-term economic policy objectives.

2. A set of tools will be used to analyze the behavior of economic variables and the interrelationships established in an economic system, always from the perspective of public intervention in the economy. In this sense, a rigorous description of the institutional framework in which the decisions will be made, and specifically of the Central Banks of US and Japan, as well as those responsible for discretionary fiscal policies.

3. The main sources of information on the strategy and practice of economic policy will be presented. Students will analyze the basic documents: Federal Reserve balance sheet, public presentations by Board of Governors of the Fed members; Documents prepared by the Congressional Budget Office; Economic Report of the President; Reports and articles published by the Bank of Japan and articles in scientific journals.

4. The main econometric methodologies and approaches used in Central Banks will be used to carry out comparative economic policy analysis in practical lessons.



Keywords: Economic policy. Monetary politics. Fiscal policy. Great Recession.

Area of knowledge: Applied Economics


General proficiencies

CB4 -Students are able to transmit information, ideas, problems and solutions to both specialist and non-specialist audiences.

CG01 - A capacity for analysis and synthesis.

CG03 - Oral and written communication in their mother tongue.

CG06 - The ability to search for and analyse information from different sources.

CG14 - Critical and self-critical skills.

CG17 - A capacity for self-reliant learning.


Specific proficiencies

CE01 - Understand economic institutions as the result of theoretical or formal representations of modern economies.

CE02 - To identify sources of economic information relevant to their particular enterprise and their contents.


Learning outcomes

R03 - National and international economic reality, productive sectors, public sector, economic institutions and their evolution.

R13 - Spanish economy, world economy and economic history.

R27 - Limitations of Economic Theory. Current research areas and outstanding problems.

RA1 - Understand the logic of the practice of monetary and fiscal policy in the United States and Japan.

RA2 - Analyze the monetary and fiscal policy decisions adopted in the United States and Japan.



Methodology - Activity Contact hours Non-contact hours
A-1 Expositive-participatory lessons 35  
A-2 Practices 15  
A-3 Debates and presentations 10  
A-4 Project   35
A-5 Readings   15
A-6 Individual study   37
A-7 Exams and proofs   01
A-8 Individual tutorials   02
Total 60 90



Learning outcome Evaluation System Weight (%) Character
R3, R13, R27, RA1, RA2 Final Exam 60 Recoverable
R3, R13, R27, RA1, RA2 Practices 40 Recoverable



Part 1: Monetary and Fiscal Policy in the USA

1 The conduct of Monetary Policy

1.1 Origins and Structure of the Federal Reserve System

1.2 Monetary Policy Strategy

1.3 Conventional and Nonconventional Monetary Policy Tools

1.4 Fed Policy Procedures: Historical Perspective

2 Fiscal Policy

2.1 The Federal Budget

2.2 Fiscal Policy Multipliers in the US and Cross-Country Interactions

2.3 Automatic Stabilizers

2.4 Fiscal Policy Rules vs Discretion

2.5 Fiscal Policy and Income Inequality Trends

2.6 Economic Policy and Financial Instability: monetary and fiscal policy during the Great Recession

Part 2: Economic Policy in Japan

3 Economy and Economic Policy in Japan since 90s

3.1 A growthless decade, assets depreciation and deleveraging

3.2 The collapse of the financial system

3.3 The limits of the Monetary Policy

3.4 The Public Budget in Japan. Automatic Stabilizers

3.5 Discretionary Fiscal Policy during the 90s

3.6 The relationship between Monetary and Fiscal Policies



Access the bibliography that your professor has requested from the Library.

Main References:

Mishkin, Frederic S. (2016): The economics of Money, Banking and Financial Markets 11th edition, Pearson Education.

Further reading:

Ahearne, A., Gagnon, J. et alli (2002): "Preventing Deflation: Lessons from Japan's Experience in the 1990's", International Finance Discussion Papers No. 729. Board of Governors of the Federal Reserve System.

Atkinson, A. B. Piketty, T. and Saez, E. (2011): "Top Incomes in the Long Run of History". Journal of Economic Literature 49, (1): 3-71.

Bernanke, Ben S. (2012): "Lectures on the Federal Reserve and the Financial Crisis", available on http://www. federalreserve. gov/aboutthefed/instructor-resources. htm

Dabla-Norris, E., Kochar, K., Suphaphinat, N., Ricka, F. and Tsounta, E. (2015): "Causes and Consequences of Income Inequality: A Global Perspective". IMF Staff Discussion Note. SDN/15/13.

Owyang M. T., Ramey, V. A. and Zubairy, S. (2013): "Are Government Spending Multipliers Greater During Periods of Slack? Evidence from 20th Century Historical Data", NBER Working Paper 18769.

Taylor, J B (2012): "Monetary Policy Rules Work and Discretion Doesn't: A Tale of Two Eras", Journal of Money Credit and Banking, 44(6), 1017-1032.

Ueda, Kazuo (2012): "Deleveraging and Monetary Policy: Japan Since the 1990s and the United States Since 2007", Journal of Economic Perspectives, vol. 26 (3): 177-202.

Uhlig, H. (2005): "What Are the effects of monetary policy on output? Results from an agnostic identification procedure", Journal of Monetary Economics, 52, 381-419.

Woodford, M (2001): "The Taylor Rule and Optimal Monetary Policy", The American Economic Review, 91(2), 232-237.

Woodford, M (2011): "Simple Analytics of the Government Expenditure Multiplier, " American Economic Journal: Macroeconomics 3(1):1-35.






Aulario de la Universidad Pública de Navarra en Pamplona.