Macroec Crises/Debt Sustainab

3 Credits · Level: Graduate, Undergraduate

Very few issues trigger the intense interest of economists, politicians, public servants, and citizens as public debt does. Debt can be an enormous resource to finance public policies aimed at boosting economic growth and welfare or could crowd-out private sector investment significantly, create economic instability (including high inflation), pose inter-generational equity problems, and hurt long-term growth through the ill effects of an unsustainable dynamics. This course aims at providing a comprehensive understanding of the macroeconomic and political factors behind economic crises and public debt sustainability. It will explore key theoretical foundations and empirical evidence, with a focus on the interplay between economic factors and (domestic and international) political institutions. In the process, we will go over well-known economic crises, which will serve to illustrate analytical concepts, with the occasional participation of guest senior policymakers.