The relevance of economic policy is highlighted by the current COVID- induced recession 2020/21. This is the deepest since the World Depression in the twenties of the past century. The course compares the current crisis to the last ones including the Financial Crisis and economic policy which can change a crisis into an opportunity for change and welfare improvement. The new multiannual budget of the EU, the Recovery and Resilience Facility and new safe European Bonds help to raise money which should not be used for old projects, and vested interests, but for change and societal goals.

The goal of this course is to analyze which instruments economic policy proposes for increasing welfare, reducing disequilibria and social conflicts and preventing the overuse of resources and climate change. To carry out and finetune the instruments under very different circumstances requires a thorough knowledge of economic theory, but also learning from actual policy. Here, we concentrate on Europe and Austria, but discuss the retreat of the USA from multilateralism and China´s ambition to become the leading economy. The rise of of Africa and the doubling of its population is discussed. Economics should be embedded in broader knowledge provided by other social sciences. It cannot offer experience with total precision and be independent of values and judgement, but there exist many methods with which to carve out facts and instruments that have worked under specific circumstances. Science can help reduce the impact of populism, as well as the quick spread of false information in social networks.

Topics investigated are growth, well-being, unemployment, equality, decarbonisation problems, the role of the public sector goals , migration, trade and globalization, the solutions for so many topics must employ synergies

Economic policy can be based on sound theory and instruments that have proved successful. There is a lot to be learned from other sciences, and experience of other countries. Crisis may be used for deep reforms. Quantitative analyses and knowledge of facts is important. There is no one-size-fits-all, and bottom-up initiatives are important, as is cultural diversity.

Best students can choose a topic for their bachelor thesis.

Combination of top-down and bottom-up approaches. The topic is presented by the lecturer and students prepare a presentation of the topic, combining theory, evidence and personal preferences and experience, leading to an intensive discussion.