Milan Kaštan VŠB-Technical University of Ostrava Faculty of Economics Department of National Economy

Distance: 1700 km One day travel Airports: Praha Ostrava Ostrava – Praha (train) 3 hrs, from cca10 EUR

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Department of National Economy or – and switch to English Courses (just a pick): Economic Policy (A, B, C), Descriptive Economics, Macroeconomic Analysis, Labour Market Policy, Monetary Policy (A, B, OE), Tax and Fiscal Policy Faculty of Economics – WEB for Exchange students:

Conflict of Aims of Economic Policy Milan Kaštan VŠB-Technical University of Ostrava Faculty of Economics Department of National Economy

Beginning Economics is a social science that studies how human beings use limited means and resources to meet their unlimited needs (wants). Satisfaction of individual needs increase his/hers good. Individuals have different tastes.  different ways to happiness.

Maslow Abraham (1943). Theory of Human Motivation. Psychological Review 50 (4) Classification of needs

The Role of Economic Policy? To create and maintain environment in which it is possible for individuals to meet their needs. To contribute to societal wealth maximization. What Economic Policy is and How can contribute to welfare?

Economic Policy – Definition(s) EP is the country's approach to its economy. EP is the process during which the policy maker use economic policy instruments to fulfil economic policy aims. EP is theoretical and analytical field (discipline) which observes and analyses the ongoing economic issues. EP is a standalone scientific discipline which borders economics and economic practice. …

EP is the country's approach to its economy. Institutional Environment of Economic Policy Policy Makers Tools Aims

Institutional Environment of Economic Policy Economy Coordination Mechanism Political System Bureaucracy Big Social Groups International and Supranational Organizations

Policy Makers -Classification Legislature (Lawmakers) Government (Inc. Ministry/Departments) Central Bank Courts Counterbalancing institutions (labour unions, political parties, trade chambers,…) Decision Realm (Sphere) Influence Realm (Sphere) PROCESS Definition  Realization  Control

Tools Instruments Operational Level: Micro vs Macro Influence Level: Direct vs Indirect Sphere of Action: Fiscal, Monetary, etc… Interaction Level: Selective vs Flat Relation to the System: System Generating vs Common Tools

Aims of Economic Policy Classification Societal Welfare Maximization Basic Societal Values Traditional Economic Aims ?

Basic Societal Values Freedom Equity Security Progress Independence Democracy Rationality Conflicts?

Traditional Economic Aims Production (GDP) Potential growth rate; GPD per Capita Rate of Inflation Low and Stable; Expected Rate of Unemployment Low; NAIRU Trade Balance Balanced; Balance to GDP ratio Conflicts? Complementarity?

Healthcare Insurance System - EP Approach Principle of Insurance Entities Customer (insured) Insurance Companies Healthcare service providers Lawmakers THEIR AIMS? C I P

Healthcare Insurance System - EP Approach Principle of Insurance Entities Customer (insured) Insurance Companies Healthcare service providers Lawmakers AIMS? Type of insured personInsurance fee 0-15 years 65 + (pensioners) Amount per person (gov.) StudentsAmount per person (gov.) EmployeesRate from income UnemployedAmount per person Unemployed (do not want)Amount per person EntrepreneursRate from income with minimal amount

Healthcare Insurance System - EP Approach Principle of Insurance Entities Customer (insured) Insurance Companies Healthcare service providers Lawmakers AIMS? IC wants healthy and wealthy patients (high income) Consumers want best insurance (low price, high quality care)

Healthcare Insurance System - EP Approach Principle of Insurance Entities Customer (insured) Insurance Companies Healthcare service providers Lawmakers AIMS? IC wants low costs (less services provided) Healthcare services providers wants stable and high income

Healthcare Insurance System - EP Approach Principle of Insurance Entities Customer (insured) Insurance Companies Healthcare service providers Lawmakers AIMS? Healthcare services providers wants stable and high income And low expenditures Consumers want high guality healthcare

Time Delay Related Issues To Find out a Problem To Find out the Solution To Implement the Solution Business vs Political Cycle

Conclusion There are no easy solutions to difficult problems Political representatives are only one part of many who influence economic situation Always compare costs and benefits of particular solutions Think in broader concepts

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Contact information Milan Kaštan VŠB-Technical University of Ostrava Faculty of Economics Department of National Economy