COURSE INFORMATION
Course Title: FISCAL POLICY
Code Course Type Regular Semester Theory Practice Lab Credits ECTS
ECO 342 B 6 3 0 0 3 6
Academic staff member responsible for the design of the course syllabus (name, surname, academic title/scientific degree, email address and signature) NA
Main Course Lecturer (name, surname, academic title/scientific degree, email address and signature) and Office Hours: Dr. Kristal Hykaj khykaj@epoka.edu.al
Second Course Lecturer(s) (name, surname, academic title/scientific degree, email address and signature) and Office Hours: NA
Language: English
Compulsory/Elective: Elective
Study program: (the study for which this course is offered) Bachelor in Banking and Finance (3 years)
Classroom and Meeting Time:
Teaching Assistant(s) and Office Hours: NA
Code of Ethics: Code of Ethics of EPOKA University
Regulation of EPOKA University "On Student Discipline"
Attendance Requirement:
Course Description: Examining about Public finance, definition and aim of fiscal policy, giving method of fiscal policy. Analyzing fiscal policy for inflation, deflation, instability and stagflation.
Course Objectives: Evaluate the effectiveness of fiscal policy through consideration of factors including, the ability to target sectors of the economy, the direct impact on aggregate demand, the effectiveness of promoting economic activity in a recession, and crowding out.
BASIC CONCEPTS OF THE COURSE
1 Fiscal Policy
2 Public Finance
3 Budget
COURSE OUTLINE
Week Topics
1 Introduction to Fiscal Policy. This lecture provides an overview of the recent macroeconomic trends, and identifies main fiscal challenges in the region where the course is taught, and presents the roadmap for the course. Page 1-24
2 Fiscal Policy.This unit covers the government’s role and key objectives in conducting fiscal policy: macroeconomic stability, efficient and equitable resource allocation, and sustainable long-term growth. Page 24-91
3 Sources of government revenue. In practice, fiscal policy entails specifics about expenditure and tax policy. The level and composition of expenditure and revenue matter greatly when looking at the impact of fiscal policy. Page 261-275
4 Types of government expenditure. Fiscal policy has also a role to play in terms of long term growth, mainly through investment in physical and human capital, and equity. Page 272-292
5 Taxation. Taxation in Albanian and its comparison around the world. Page 523-557
6 The Budget Outcome. Different fiscal aggregates have different purposes. To analyze fiscal policy, it is important to have a good understanding of key concepts, their interrelations, and their importance for fiscal objectives. Page 91-120
7 Midterm
8 Distribution in Fiscal Policy. This unit covers the concept of fiscal stance and how it adjusts for cyclical components of output fluctuations, and the impact of countercyclical policies. Page 489-521
9 Evaluation of fiscal policy. Designing investment spending plans and identifying the challenges associated with it are important for low income countries as well as emerging countries. Page 557-587
10 Taxation Inefficiency. Many LICs and EMs (LIIE) face high income volatility. They face more volatile business cycles and less consumption smoothing compared to AEs. They also face more inflation and exchange rate volatility and finally they experience more often fiscal crashes and sudden stops. Page 589-623
11 Deficit and Debt. This unit overviews the standard techniques to study debt dynamics, and explains why it is necessary to preserve debt sustainability in the medium to long run. PAge 647-674
12 Fiscal Policy and Debt. The 2008-09 crisis and its aftermath make the challenge of designing an optimal fiscal policy even more pressing. Page 674-701
13 The role of businesses and organization in the Fiscal Policy. In the case of oil exporters, a specific fiscal policy framework taking into account high income volatility and intergenerational transfers is warranted. Page 701-736
14 Semester Review for Final Exam. Questions and discussion.
Prerequisite(s): Macroeconomics
Textbook(s): Public Finance and Public Policy by Jonathan Gruber - Sixth Edition
Additional Literature:
Laboratory Work:
Computer Usage: Excel, Word, PowerPoint
Others: No
COURSE LEARNING OUTCOMES
1 Evaluation of fiscal policy
2 Fiscal policy and the ability to target sectors of the economy
3 Fiscal policy impact on aggregate demand
4 Fiscal policy effectiveness of promoting economic activity in a recession
5 Fiscal policy and crowding out
COURSE CONTRIBUTION TO... PROGRAM COMPETENCIES
(Blank : no contribution, 1: least contribution ... 5: highest contribution)
No Program Competencies Cont.
Bachelor in Banking and Finance (3 years) Program
1 The students gain the ability to look at the problems of daily life from a broader perspective with an increased awareness of the importance of moral/ethical considerations and professional integrity in the workplace.
2 They develop their knowledge and understanding of banking and finance including concepts, theories, and analytical tools that serve both in national and international markets.
3 They gain an understanding of the role of financial management in business firms and the essentials of corporate finance and further develop their knowledge in the field.
4 They are able to apply valuation models to estimate the price of different financial assets, measure risk and describe the risk-return tradeoff.
5 They are provided with the knowledge and understanding of the regulatory framework and functioning of banking system and central banking as well as international banking system.
6 They are able to understand and use fundamental economic theories and tools to solve economic problems in banking and financial services industry.
7 They have the ability to develop and utilize accounting, financial and economic data as well as other information to solve different business problems by making use of basic mathematical and statistical models.
8 They are expected to develop their numerical and IT skills as well as knowledge of databases in order to address the significant development in the delivery and use of financial services known as FinTech.
9 They develop their ability to think critically, do research, analyze, interpret, draw independent conclusions, and communicate effectively, both individually and as part of a team.
10 They are provided with opportunities to acquire the necessary skills and competencies to develop professionalism in the banking and financial services industry or to move on to further study within the discipline.
COURSE EVALUATION METHOD
Method Quantity Percentage
Midterm Exam(s)
1
35
Presentation
0
0
Case Study
0
0
Final Exam
1
55
Attendance
10
Total Percent: 100%
ECTS (ALLOCATED BASED ON STUDENT WORKLOAD)
Activities Quantity Duration(Hours) Total Workload(Hours)
Course Duration (Including the exam week: 16x Total course hours) 16 4 64
Hours for off-the-classroom study (Pre-study, practice) 2 20 40
Mid-terms 1 20 20
Assignments 1 6 6
Final examination 1 20 20
Other 0 0 0
Total Work Load:
150
Total Work Load/25(h):
6
ECTS Credit of the Course:
6
CONCLUDING REMARKS BY THE COURSE LECTURER

The purpose of this module is to present students with the role of the fiscal policy on maintaining a healthy public finance.