This course covers the principles of economic and fiscal policy and looks at economic policy in relation to the digital economy. Digitization is fundamentally changing the way business is done, and as a result, the way economic policy addresses developments in digital markets. Insofar as digital markets affect the global economy, also the way digitization affects the economy as a whole. There are policy implications of digitization that will be considered in this course, including: frictions with the traditional model of production (e.g., automation, Industry 4.0), resulting friction with the labor market and corollary social effects, cybersecurity in public and private spheres, digital currency, and digital government.

After completing this course, students will have an understanding of the basic interplay between markets and governments. They will understand the strengths and weaknesses of markets: What do markets provide (efficiently) that governments do not? What do markets fail to provide that the government must? What tools does the government have to affect markets, or correct for them? After the course, students will be able to answer these questions generally and thematically.  In the second part of the course, questions about the implications the rapid evolution of information technology poses to markets and to governments will be discussed. At the end of the course students will have a general understanding of the multi-level and multi-sector impact of digitization, and will be able to critically reflect on and discuss the topic at a general level.

Lecture, readings, video, analytical exercises of course topics.
Course instruction in English. Textbook readings (Bofinger 2015) in German.

i) Participation (10%)

ii) Group Project (20%)

iii) Mid-term exam (35%)

iv) Final exam (35%)

Foundations to Macroeconomics & basic understanding of the free market mechanism. After the registration period, students from the waiting list, who don't yet have a valid registration, will be assigned to available places in the specific courses. This allotment is not based on a first-come first-served principle.Rather, progress in the studies will be the decisive criterion. Places of students who don't show up at the first lesson will be distributed among not registered students based on their position on the waiting list.

Intermediate macroeconomics and/or microeconomics background an advantage.

By appointment,  aurelien.fichet.de.clairfontaine@wu.ac.at

Tutor: Robert Scharf, rscharf@wu.ac.at