In the essays below, you are asked to assess two important topics in International Macroeconomics which are dominating the economic debate. We are interested in how you relate each issue to any relevant economic theory, what evidence you use to analyse the topic, and how you weigh the inevitably conflicting data. Make sure to offer a balanced assessment of both sides of the argument. You do not need to reach a conclusion if you feel that the theory or data does not merit such a strong position. However, you would need to justify whatever conclusion you do reach.
For each topic, you will find below a list of possible readings which supplement the textbook and the readings in the course outline. The lists below are neither mandatory nor exhaustive. You should feel free to make your own research into the topics.
Please, use no more than 1,250 words per essay (including charts, tables and data which you might feel it appropriate to use).
ESSAY 1: Should Monetary Policy Target a Level of Inflation higher than 2%?
Readings:
- https://www.voxeu.org/article/4-inflation-target
- https://www.imf.org/external/pubs/ft/spn/2010/spn1003.pdf
- https://www.imf.org/external/pubs/ft/wp/2014/wp1492.pdf
- https://www.economist.com/blogs/freeexchange/2010/02/monetary_policy_2
- https://krieger2.jhu.edu/economics/wp-content/uploads/pdf/papers/wp607_ball.pdf
ESSAY 2: Should governments make reductions of public debt and fiscal deficits their immediate priority?
Readings
- https://www.imf.org/external/pubs/ft/wp/2013/wp1301.pdf
- https://scholar.harvard.edu/files/rogoff/files/growth_in_time_debt_aer.pdf
- https://www.voxeu.org/debates/has-austerity-gone-too-far (all articles)
- https://www.maxcorden.com/wp-content/uploads/2013/12/Ambulance-Economics.-The-Pros-and-Cons-of-Fiscal-Stimuli-2011.pdf
- https://www.nybooks.com/articles/22756