Xi Xian Short Course, co-hosted by IIDPF and the School of Public Finance and Taxation, was successfully held from 4 December 2023 to 5 December 2023 in Room 119 of Wenqin Building. Dr Qingyuan Du from the School of Economics of Monash University, as the guest speaker of the Course, gave a keynote speech entitled “Fiscal Policies in A Small Open Economy”. Professor Tian Binbin, Lecturer Wang Xiaoxiao from the School of Public Finance and Taxation, and over thirty faculty members and students, including researcher Dr Zou Wei from IIDPF are present in this course.
This short course is designed to provide a comprehensive understanding of how fiscal policies can impact a country's output, inflation, and foreign debt position within the context of a small open economy. In four lectures, Dr Du assessed welfare implications across various policy scenarios, focusing on the introduction and discussion of literature related to fiscal devaluation, the role of capital control policies, and domestic fiscal policy tools in preventing excessive borrowing in a small open economy, as well as Ramsey policies under fixed exchange rates and nominal wage rigidity. Dr Du also provided answers to how fiscal policy can play a stabilizing role in the macroeconomy, particularly in situations where a country faces constraints on adjusting its exchange rate and how fiscal policy can enhance domestic welfare in a small open economy that encounters significant frictions in financial market or factor markets.
Dr Du gave a wonderful speech to the faculty members and students present and at the same time triggered their in-depth thinking. In the discussion session, the attending faculty and students actively interacted regarding the theoretical model, and empirical evidence involved in the course.
