Séminaire : politique économique [ECONM860]

Learning outcomes

The objectives are threefold : - To train the students to grasp the main macroeconomic mechanisms intervening when the measures of economic policy impact the economy with a simplified model of the Belgian economy that is built with a simulation software; - To measure the relative impact of the economic policy measures; - To develop a strategy to face a given macroeconomic situation.

Content

With a simulation software, the students introduce economic policy changes into the model at the level of the adequate instruments (personal income tax, corporate tax, VAT, social contributions, public employment, ...) and analyse the relations between the variables that are affected by the changes. The variable values at the start make up the baseline projection which is used to measure the effects. After analysing the effects, the attention is focused on the policy mix to be designed. To achieve some goals within a baseline macroeconomic scenario, a combination of measures has to be chosen.