While the program is subject to modification to reflect changing needs, it normally consists of the components outlined below. More details can be found by downloading the 2017 program.
Introduction and Course Overview
This session provides an overview of the goals and contents of the course and establishes the context for each of the segments to follow.
Austrian and European Political and Economic Issues
Austrian Authorities (1 WEEK)
Participants are introduced to the JVI’s host country, Austria—its historical, constitutional, cultural, economic, political, and European dimensions—and learn about the functioning of the European Economic and Monetary Union. During this segment, participants typically visit the Oesterreichische Nationalbank and a research institute that specializes in the study of transition economies.
Macroeconomic Management Issues
IMF/JVI (2 WEEKS)
This segment introduces participants to the economic analysis underlying the design of macroeconomic policies, with special attention devoted to how financial sector issues interact with macroeconomic management. It also explores the interrelations between the different sectors of an economy. Key topics that are covered include macroeconomic stabilization, structural policies and economic growth, public debt sustainability and fiscal rules, frameworks for monetary and exchange rate policies, and international capital flows. The segment also examines the global financial crisis and the sovereign debt crises in Europe, macro-financial linkages, and financial stability more generally. In workshops, participants analyze macroeconomic issues based on illustrative country cases, and debate policy issues relevant for the region.
Financial Sector Issues
OeNB (1 WEEK)
This segment provides a comprehensive introduction to financial stability issues. It covers a wide selection of interrelated topics and complements the macroeconomic management issues segment. As a starting point, it reviews the costs of financial instability and discusses the economic rationale for financial regulation. It then goes on to discuss the emergence of the current financial crisis and its implications for financial regulation, especially in the banking sector. The presentations review the changes to the institutional framework and substance of new financial regulation in Europe with special emphasis on macroprudential policy. The course includes an illustration of macroprudential instruments and tools and their implementation in selected countries. A part of the segment is devoted to assessing methods of liquidity risk and credit risk and their usage in a banking stress test environment. Finally, the segment embeds the debate in a broader international discussion on financial stability issues with special focus on the financial development of emerging markets.
Trade Policy and International Trade Regimes
WTO (1 WEEK)
The aim of this course segment is to provide participants with the foundations of the theory of international trade and trade policy and the international trading system. The first part combines insights from the economics of trade and trade policy with practical applications that focus on specific conditions of transition countries. The part dealing with the multilateral trading system addresses issues related to WTO Agreements and negotiations.
The course gives participants (i) the basic framework to understand the determinants of trade, the linkages between trade and macroeconomic policy, the welfare and distributional implications of different trade policy instruments, and the role of openness and international trade agreements in economic performance and development; and (ii) a deeper understanding of the institutions, rules and processes shaping trade policy and their underlying economic rationales, with special emphasis on the role of WTO Agreements and their disciplines, and on the negotiations under the Doha Development Agenda.
Participants will evaluate and provide feedback for each segment and for the course overall. They are also asked to comment on how they will apply the knowledge they have obtained to their jobs when they return to their home countries. Each participant receives a certificate after successfully completing the course.
Participants are evaluated throughout based on their comprehension of the material, their contributions to the discussions, and their teamwork skills. The most active and best-performing participants are awarded a letter of excellence.