Evaluate the sustainability of the current account deficits


Assignment:

Research Paper Instructions

Sixteen percent of your course grade will depend on a 5-8 page research paper. Your research paper should combine economic theory with sound data analysis. Listed below are the potential reEearch paper topics, each of has readily accessible economic data and sources. Your paper will be due on December 14th, but I am happy to review any drafts you may have up until December 7th. You must select your paper topic no later than October 17th. As an added incentive, 5% of your paper grade will be determined by whether or not you get your topic choice to me on time.

• Assess the viability of a currency union in North America, South America, the MENA region, or East Asia

• Evaluate the sustainability of the current account deficits of one of the following countries: Australia, Greece, Ireland, Portugal, or Spain.

• Trace out the steps that led to the recent Greek debt crisis and compare the financial situation in either Ireland, Portugal, or Spain to that in Greece.

• Make a case for or against dollarizing one of the following economies: Angola, Argentina, India, Nigeria, Thailand, Turkey, or Venezuela. If these countries were to dollarize, what currency would they adopt?

• Trace out the events leading to hyperinations in either Germany from 1922-1923, Hungary from 1945-1946, or Zimbabwe from 2007-2008. What were the leading causes of hyperination? Haw was this hyperination eventually dealt with?

• Using the theories of IRP and PPP as well as its trade balance with the US, evaluate whether or not China's currency is undervalued relative to the dollar. Assess the impact of Chin a revaluing its currency on both the Chinese and US economies.

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Microeconomics: Evaluate the sustainability of the current account deficits
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