Description

In these instructions I use “graphs” to mean time series plots of macro data.   For example, a graph of real GDP has real GDP on the y-axis and time on the x-axis.

I will use diagrams to mean illustrations of models we have used in the class.  For example, AD/AS can be represented in a diagram, equilibrium in the money market can be represented in a diagram.  The PPF is a diagram. 

The Assignment

For an economy of your choosing (NOT the US).  Write about the following:

1. How healthy is the patient?  Support your case with data and analysis.  Remember:
   • be careful to read any graphs you are using note the units on both axes and the title of the graph
   • remember to say if the data is real or nominal, quarterly or annual
2. Why has this patient not been healthier over the last ten years? What policies have succeeded or failed – choose at least three and explain USE DIAGRAMS WHERE NECESSARY
3. What is the finance ministry/government trying to do to improve things? Explain why what they are doing will help.

NOTES:

I EXPECT AT LEAST THREE DIAGRAMS AND THREE GRAPHS AS PART OF YOUR ASSIGNMENT

ALWAYS USE THE LOCAL CURRENCY DO NOT USE US DOLLARS UNLESS YOU NEED TO COMPARE YOUR COUNTRY WITH ANOTHER AND YOU THINK US DOLLARS ARE AN APPROPRIATE COMMON MEASURE

Most central banks provide very useful accounts about their economy and their monetary policies.  Many of their websites are in English in addition to the local language.  For example, the Bank of Japan puts out regular “Monthly Report of Recent Economic and Financial Developments.”  These are all in English and provide a very comprehensive analysis of their health checks that you can use. 

Many central banks have a policy committee, just like the US and you can read their reports for example here (Links to an external site.).  Central banks use historic data  but they also try to look forward so their reports provide a view on the economy’s future health. 

You will want to look at some quality economic commentary from outside the government or the central bank.  The problem with economic commentary is not where to find it but how to choose which of the millions of commentaries to read.  For further ideas to answer questions 2 and 3 you might try the Economist, the Financial Times or the Wall Street Journal. 

Remember to reference the notes on plagiarism and general instructions about assignments in the syllabus.

RUBRIC

1. How healthy is the patient? Support your case with data and analysis.  Remember:
   1. be careful to read the graphs you are using
   2. remember to say if the data is real or nominal, quarterly or annual

UP TO 20 MARKS.  UP TO 5 FOR EACH OF THE 4 HEALTH VARIABLES.  MUST REFERENCE AND DISCUSS/DESCRIBE DATA AND PROVIDE A GRAPH OR THE NUMBERS FOR THE FULL 5 MARKS

2. Why has this patient not been healthier over the last ten years? What policies have succeeded or failed – choose at least three and explain USE DIAGRAMS WHERE NECESSARY

UP TO 20 MARKS. UP TO 10 FOR EACH POLICY DISCUSSION.  FOR FULL MARKS AT LEAST ONE DIAGRAM ILLUSTRATING THE ARGUMENT IS NEEDED MINIMUM THREE DIAGRAMS IN TOTAL

3. What is the finance ministry/government trying to do to improve things? Explain why this will help.

UP TO 20 MARKS. UP TO 10 FOR EACH INITIATIVE DISCUSSED AT LEAST ONE DIAGRAM OR DATA SET FOR THE FULL 10 MARKS