Empirical analysis of monetary and fiscal policy 2400-PL3SL256B

The aim of the seminar is to prepare students to write a bachelor thesis on topic related to practical aspects of monetary and fiscal policy. The possible topics of the theses may cover the following issues:
- Monetary policy during the global financial crisis
Has monetary policy contributed to the crisis? Unconventional methods in monetary policy (quantitative easing, negative interest rates). The role of central banks in ensuring financial stability. Monetary policy and macro-prudential policy.
- Zero interest rates, deflation, liquidity trap
What central banks should do when nominal interest rates are at the zero lower bound?. What is a liquidity trap? What are the ways to escape from the liquidity trap?
- Transparency of monetary policy.
What is the transparency of monetary policy and why is it important? Communication policy of central banks and its influence on markets.
- Inflation expectations
The role of inflation expectations in macroeconomics. Ways of measuring inflation expectations. The use of inflation expectations by central banks.
- Central bank's forecasts
Preparation and use of forecasts by central banks. The impact of publication of central bank forecasts. Forecast targeting.
- Interactions between monetary and fiscal policy
"Unpleasant Monetary Arithmetic" and the fiscal theory of the price level. The phenomenon of fiscal dominance and the need for coordination of monetary and fiscal policy.
- Fiscal sustainability
How to define and how to assess fiscal sustainability?
- Debt crisis in Europe.
What were the causes and consequences of the debt crisis in European countries? What is the impact of the fiscal situation of the country on financial markets?