Public University of Navarre

Academic year: 2024/2025 | Previous academic years:  2023/2024  |  2022/2023  |  2021/2022  |  2020/2021 
International Double Bachelor's degree in Economics, Management and Business Administration at the Universidad Pública de Navarra
Course code: 176840 Subject title: INTERNATIONAL ECONOMIC POLICY
Credits: 6 Type of subject: Optative Year: Period: 2º S
Department: Economía

Partes de este texto:


Module/Subject matter

Applied Economics.



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.


General proficiencies

Not applicable.


Specific proficiencies

Not applicable.


Learning outcomes

RA02: Analyze economic institutions as the result and application of theoretical or formal representations of how the economy works.

RA03: Explain the functions of economic agents and the role of institutions in economic and social activity at its different territorial levels (from local institutions to international organizations).

RA04: Identify the main instruments of public intervention and relate policy recommendations to economic, environmental, and social sustainability.

RA05: Identify and analyze the historical, social, and institutional factors that condition economic processes.

RA06: Identify and anticipate relevant economic problems related to resource allocation in general, both in the private and public spheres.

RA07: Understand the relationship between verbal, graphical, mathematical, and econometric analysis in the study of economics.

RA09: Identify and recognize relevant sources of economic information and their content.

RA10: Derive relevant information from economic and social data that is difficult for non-professionals to recognize.

RA11: Use professional criteria for economic analysis, preferably those based on the use of technical instruments.

RA12: Manage resource allocation effectively, both in the private and public spheres.

RA13: Apply rationality to the analysis and description of any aspect of economic reality.

RA14: Evaluate the consequences of different action alternatives and select the best ones given the objectives.

RA15: Apply mathematical tools to synthesize complex economic problems.

RA17: Prepare reports and convey ideas on any economic matter, clearly and coherently, to both specialized and non-specialized audiences.


RA18: Work in a team, being able to argue their proposals and validate or reasonably refuse the arguments of others.

RA19: Organize work, in terms of good time management, order, and planning.

RA20: Select and generate the necessary information for each problem, analyze it, and make decisions based on it.

RA21: Value ethical, social, and environmental commitment in professional practice.

RA22: Continue learning in the future independently, deepening the knowledge acquired or starting in new areas of knowledge.



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




Weight (%) It allows
test resit
required grade
All Final Exam 60 Recoverable 4
All Practices 40 Recoverable 5






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:

Bank of Japan (2019): "Price Stability Target" of 2 per cent and "Quantitative and Qualitative Monetary Easing with Yield Curve Control", Japan.

Blinder, A.S. (2023): Landings, Soft and Hard: The Federal Reserve, 1965-2022, Journal of Economic Perspectives, vol. 37(1): 101-120.

Federal Reserve (2016): Federal Reserve System. Purposes and Functions. 10th Edition. Board of Governors of The Federal Reserve System.

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

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.

Dell`Ariccia, G., Rabanal, P. y Sandri, D. (2018): Unconventional Monetary Policies in the Euro Area, Japan, and the United Kingdom. Journal of Economic Perspectives, 32 (4): 147¿172.

Kuttner, K. N. (2018): Outside the Box: Unconventional Monetary Policy in the Great Recession and Beyond. Journal of Economic Perspectives, 32 (4): 121¿146.

Mishkin, Frederic S. y Eakins, Stanley G. (2018): Financial Markets and Institutions 9th edition, Pearson Education.

Taylor, J.B. (2000): "Reassessing Discretionary Fiscal Policy", Journal of Economic Perspectives, 14(3): 21-36.

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.

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.