Assignment brief: For your individual written assignment you will choose a macroeconomic issue or problem which can be analysed or evaluated using appropriate macroeconomic theory, covered in this module. However, you cannot use the Keynesian Cross or the simple (global economy) IS-LM model. More advanced versions of the IS-LM model can be used. You will need to research this issue or problem, using relevant textbooks, journals and periodicals, and present an analysis which suggests how macroeconomic analysis contributes to both an understanding of the topic and a range of possible solutions, or responses from the perspective of government policy. You are not required to advocate a particular solution/response, but to examine the strengths and weaknesses of the possibilities you have researched i.e. to adopt an evaluative approach. It might be very useful to use different theoretical models and compare the results.
This assignment is a form of inquiry-based learning, where your learning is motivated by an issue or problem that interests you, and you develop a deeper understanding of this as you research this area, review competing perspectives, and receive feedback from your tutors and class mates.
Direction for Writing Your Assignment:
Your assignment should not simply describe the relevant context, even if this task is performed well you will only receive a mark between 40% and 50%. The aim is to use academic theories to understand and explain the important drivers of events (causes), rather than simply describing events (symptoms).Therefore, the most important elements within your assignment will involve analysis and evaluation, which requires use of appropriate theories from the academic literature. Evaluate the appropriateness and applicability of the insights provided by and then present and explain your own insights.
The type of questions that will help you develop the descriptive, analytical and evaluative sections of your assignment could include:
Description stage of your assignment:
• Introduce the issue / problem.
• What is the issue and context?
• Contextualise the topic / problem / provide background information.
• Where?
• Who is involved/ affected/ interested?
• When?
Analysis stage of your assignment:
• Consider alternative approaches / perspectives/ theories for understanding the issue.
• Why propose each approach / theory?
• How is the issue / problem addressed by the approach / theory?
• How might the theory provide an appropriate solution?
• Relative efficiency of different approaches?
• Consider intended and unintended consequences.
• Explain the alternative perspectives, and apply them to the context.
• What context does the perspective / theory address.
• What aspect of the context is not addressed by the theory (if applicable)?
• What insights are provided by each perspective?
• Why might this perspective be proposed? What were the reasons and motivation for this perspective?
• Who might propose this perspective?
• How appropriate is the theory in providing an explanation and solution to the specific issues / context.
• How does the perspective work in theory, and practice?
Evaluation stage of your assignment:
• What is the underlying issue, and proposed solution / response?
• Consider how effectively the theory explains the working of the system.
• Does the theory only apply within specific contexts? Does the context being considered provide an appropriate basis for applying the theory?
• What are the potential implications of applying the theory to the issue / problem?
• Does the theory need to be altered, in order to be more effectively applied to explaining the issue/ resolving the problem?
• What are the consequences and risks of applying the theory to this particular issue / context?
• Consider the risks relative to the rewards of each potential application of a theory to this particular issue / problem.
• Propose adjustments that will enable the theory to more effectively match the issue / problem.
So, what kind of topics/themes/issues would be relevant for this assignment?
The following is an indicative list, but don’t feel that you have to choose one of these – they are here to provide you with some insight into what is expected. You could modify, change the focus or wording of one of these issues, or choose something completely different. When you have made a choice of topic, let me know so that you can get it “signed off” as an appropriate one for the assignment.
• The austerity policies in the Eurozone.
• French stagnation.
• Comparison of the performance of G7 countries since the credit crunch.
• What were the macroeconomic consequences of the Hartz reforms in Germany and what impact might the current labour market and welfare reforms in Germany have?
• What is the likely macroeconomic impact of the current geopolitical crises?
• Are the loose monetary policies of the major central banks stabilising or destabilising the World Economy?
• Italian stagnation.