Economic and Fiscal Policy
Vienna University of Economics and Business (WU Wien)
Fall Semester 2020
Vienna University of Economics and Business (WU Wien)
Fall Semester 2020
Please read and present:
Likelihood of a coronavirus recession: Views of leading US and European economists
https://voxeu.org/article/economic-impact-pandemic-igm-forum-survey
Baldwin: How we should think about containing covid19 economic crisis
https://voxeu.org/article/how-should-we-think-about-containing-covid-19-economic-crisis
Flattening the Pandemic and Recessionary Curve
https://econfip.org/policy-brief/flattening-the-pandemic-and-recession-curves/
Coronavirus and macroeconomic policy
https://voxeu.org/article/coronavirus-and-macroeconomic-policy
Introduction to what the ECB has done in 2012
Monetary Policy since the crisis: Speech by Peter Praet (1 - 2 people)
https://www.ecb.europa.eu/press/key/date/2017/html/sp170316.en.html
Helicopter Money: The Time is Now
https://econfip.org/policy-brief/helicopter-money-the-time-is-now/
The monetary policy response to the pandemic emergency
https://www.ecb.europa.eu/press/blog/date/2020/html/ecb.blog200501~a2d8f514a0.en.html
Vitor Constancio – Past and future of the ECB monetary policy (This is additional material that is also a bit technical, but you can use it if you think the above material is not enough for everybody)
https://www.ecb.europa.eu/press/key/date/2018/html/ecb.sp180504.en.html
Please cover:
Multiplier Debate - Fiscal Consolidation - At What Speed - Blanchard and Leigh
https://voxeu.org/article/fiscal-consolidation-what-speed
Austerity and fiscal adjustments - Alberto Alessina
https://voxeu.org/article/fiscal-adjustments-and-recession
https://voxeu.org/article/cut-deficits-cutting-spending
The New View on Fiscal Policy – by Jason Furman
https://voxeu.org/article/new-view-fiscal-policy-and-its-application (this is a summary, please also read the whole article for clarification and details:
Please, make sure you explain well the concept of Ricardian equivalence in your presentation. It will be important for the exam.
As usual, please have in mind that you can split the material in other proportions regarding your own preference.
Let's start with this more advanced text, a speech by Chris Sims from 3 years ago, where he explains how monetary and fiscal policy interact with each other. Two people can take this text if it seems more advanced.
https://www.kansascityfed.org/~/media/files/publicat/sympos/2016/luncheon-discussion.pdf?la=en
Completing the Odyssean journey of the European monetary union - Vitor Constancio (same here, two people can take this)
https://www.ecb.europa.eu/press/key/date/2018/html/ecb.sp180517.en.html
The European policy response - two proposals of European top economists:
https://voxeu.org/article/proposal-covid-credit-line
Repair and reconstruct: A Recovery Initiative
https://voxeu.org/article/repair-and-reconstruct-recovery-initiative
Speech by Jay Powell at the Peterson Institute for International Economics, 13 May: Current Economic Issues
https://www.federalreserve.gov/newsevents/speech/powell20200513a.htm
Keeping Businesses Alive - Saez and Zucman
https://econfip.org/policy-brief/keeping-businesses-alive-the-government-will-pay/
Christina Patterson: The most exposed workers in the coronavirus recession are also key consumers: Making sure they get help is key to fighting the recession
Viral recessions: Lack of demand during the coronavirus crisis - Werning, Lorenzoni, Straub and Guerrieri
https://voxeu.org/article/lack-demand-during-coronavirus-crisis
As usual, please have in mind that you can split the material in other proportions regarding your own preference. I have only given you indicative guidance how it seemed to me to be fair, you can decide how many people take each of the materials yourself.