Course syllabus ZHP - Principles of Economic Policy (ŠAVŠ - Sklad předmětů)

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Course title: Principles of Economic Policy
Semester: -- item not defined --
Course supervisor: doc. Ing. Pavel Mertlík, CSc.
Supervising department: Department of Law and Economics (ŠAVŠ)
Prerequisites for registration: not Bachelor state examination
Time allowance: full-time, 2/0 (hours of lectures per week / hours of seminars per week)
part-time, 0/12 (lectures per period / seminars per period)
Type of study: usual
Form of teaching: lecture
Mode of completion and credits: Exam (3 credits)
Course objective:
The subject presents an analytical-descriptive overview of institutional and functional changes in the world economic policies and economies of advanced countries in recent decades. The structure of the subject is as follows: global economic and policy changes - changes of the European economy and economic policy (development of economic integration) - structural reforms and economic policy of the Czech Republic and countries of Central and Eastern Europe (economic transformation), about 1/3 of the teaching load each part.

Learning outcome of the course: The aim of the course is to get acquainted with the economic realities of advanced economies and with the main economic policy measures, and to understand their nature and purpose. After completing the course the student is able to describe the institutional organization of the world economy and of the economy of the EU, to explain the typical economic policy procedures, to interpret the consequences and to formulate the conditions of their application. He or she is also able to clarify and generalize the consequences of introducing a centrally planned economy and its subsequent transformation for the functioning of the Czech economy and and for systemicly similar economies of Central Europe.
Course methods: Direct teaching, self-study
Course content:
1.Global changes (allowance 8/0)
a.Introduction. The institutional and functional changes in the economy in recent decades - liberalization, financial discipline, globalization. The changing role of the state in the economy. Rules vs. discretionary interventions. Fordism, post-Fordism: the change in the mode of regulation of the economy.
b.The Washington Consensus. A canonical model of a robust open mixed economy. Jacques Polak. Developments since the early 1990s - a critical review of the Washington Consensus. Joseph Stiglitz.
c.Privatization. Theory of property rights. Private and public property. Private and public goods. Merit goods. Privatization as part of economic reforms. Privatization of ownership vs. privatization of activities vs. privatization of financial flows.
d.Consequences of the global financial crisis 2007 - 2009: non-standard monetary policy instruments. Proposals for financial market regulation reforms. Suggestions to implement the Tobin Tax.

2.European economic integration (allowance 8/0)
a.European integration. European Union. Common market. The Single European Act, the Maastricht Treaty and the Treaty of Amsterdam. Economic and Monetary Union. Growth and Stability Pact, convergence criteria. Economic reforms.
b.Convergence criteria. History of criteria setup: the practice of the Deutsche Bundesbank (Otmar Issing, Juergen Starck). Exchange Rate Mechanism. European Monetary Institute. Philosophy of convergence criteria: cyclical synchronization, financial stability. The independence of the ECB. ECB main target, inflation targeting focusing low inflation.
c.The EU's economic reform agenda. Competition. Liberalization / deregulation of network industries - energy, telecommunications. Public procurement. State aid. Anti-corruption. Integration of the internal market (freedom of movement of goods and services). Integration of financial markets (free movement of capital, banking union). Business Environment - flexibility.
d.Institutional crisis of the Economic and Monetary Union. Reforms of the Economic and Monetary Union - the European Stability Mechanism, the Fiscal Compact, the Banking Union. Problems of authority and credibility.

3.Transformation of centrally planned economies (allowance 8/0)
a.Centrally planned economy (CPE) - defining features. Mechanism of functioning of a centrally planned economy. Transformation of centrally planned economies. Targets and risks of transformation. Concepts and approaches to transformation. Historical polemics. Transformation and economic reforms in Central and East European countries.
b.The welfare state and its reforms. Large-scale income-expenditure systems - the pension system, the health care system. Education and labor market reforms.

Learning outcomes and competences:
After completing the course, student will be able to:
-Will apply knowledge of processes of globalization and of the changing role of government in economy during three last decades to the case of CPE
-Will apply knowledge of processes of globalization and of the changing role of government in economy during three last decades to the case of EU
-Will describe processes of globalization and explains the changing role of government in economy during three last decades

Teaching methods and workload (hours of workload):
Type of teaching methodDaily attendanceCombined form
Direct teaching
     Attendance of lectures24 h0 h
     Consultations with teacher (part-time form of study)0 h12 h
     Course reading and ongoing preparation12 h12 h
     Ongoing evaluation24 h24 h
     Preparation for final test24 h24 h
     Preparation for final oral exam0 h12 h
Total84 h84 h
Assessment methods:
Requirement typeDaily attendanceCombined form
Mid-term test(s)60 %40 %
Final test40 %60 %
Total100 %100 %
Course completion:
Daily attendance:

3 in-term tests of 10 tasks (multiple choice questions, open questions and problems to solve), 20-minute test duration, weight of each test 20%, in total 60%:

- in-term test 1: LO1 - Global changes

- in-term test 2: LO2 - European economic integration

- in-term test 3: LO3 - Transformation of centrally planned economies

Final written exam, weight 40%:

- 2 mini-essays of A4 size each (2 x A4 total)

- content: combinations LO1 + LO2, or LO1 + LO3, or LO2 + LO3

- total time allocation: 45 minutes

- weight of 1 mini-essay: 20%

Combined form:

1 in-term test in the beginning of the 2nd tutorial consisting of 20 tasks (multiple choice questions, open questions and problems to solve), 40-minute test duration, weight of the test 40%:

- in-term test content: LO1 - Global changes

Final written exam, weight 60%:

- a test consisting of 10 tasks (multiple choice questions, open questions and problems to solve)

- 2 mini-essays of A4 size each (2 x A4 total)

- content: LO1 + LO2 + LO3

- total time allocation: 60 minutes

- test weight 20%, weight of 1 mini-essay: 20%
Support for combined/distance forms of study:
Document server of the academic information system, subject box.

Consultation with the teacher will take place continuously via the school e-mailing system and via personal meetings during the teacher's office hours.
Reading list:
Language of instruction: Czech
KLIKOVÁ, C. -- KOTLÁN, I. Hospodářská politika. 3rd ed. Ostrava: Sokrates, 2013. ISBN 978-80-86572-76-5.
DĚDEK, O. Doba eura.: Úspěchy i nezdary společné evropské měny. Praha: LINDE Praha, 2014. ISBN 978-80-7201-933-5.
SPĚVÁČEK, V. -- KOLEKTIV. Transformace české ekonomiky.: politické, ekonomické a sociální aspekty. Praha: Linde, 2002. 525 p. ISBN 80-86131-32-7.

Language of instruction: Czech
KADEŘÁBKOVÁ, A. -- ŽÁK, M. -- SPĚVÁČEK, V. Růst,stabilita, konkurenceschopnost II.: Aktuální problémy české ekonomiky při vstupu do EU. Praha: LINDE Praha, 2004. 383 p. ISBN 80-86131-49-1.

Study plans:
-- item not defined --
Run in the period of: WS 2019/2020, WS 2018/2019, WS 2017/2018, SS 2016/2017   (and older)
Course tutor: doc. Ing. Pavel Mertlík, CSc. (supervisor)
Teaching language: Czech
Room: Mladá Boleslav

Last modification made by doc. Ing. Pavel Mertlík, CSc. on 04/26/2018.

Type of output: