Assignment: MACRO-ECONOMIC project on FRANCE
NOTE:
- Analysis can be supplemented with other people work BUT DO your own analysis and diagrams by collecting data
- Do not talk about stock market; stock markets are not a macro ecnomic problem
DO NOT FORGET to Talk about:
- Net exports, Debt(public and private ), do they have more debt than is sustainable ?
- Do they fufill their GDP? Is the actual gdp below the potential GDP? Yes no why ?
- What is the cost or burrocracy?
- If intrest rates are a reflection of an economic problem in the country PLEASE MENTION THEM.
GUIDELINE for paper between 3000 and 4000 words:
• An Executive Summary
• A brief background essay on the macroeconomy in france
• A brief essay determining where the economy lies in the business cycle (USE DATA)
• A brief essay outlining the main macroeconomic problems affecting the economy
• A CRITICAL overview of the fiscal policy stance of the government
- Look at the fiscal policy (the government spending and taxation) How does the government bridge the gap between spending and taxation.
- How big is the debt of the public sector? What kind of intrest rates the goverments have to pay ?demonstrate that with ISLM diagram for short run and aggregate supply/demande diagram for the long run.
- Is the fiscal policy effective? Is it likeely to achieve the goverments objective? YES, NO? WHY? Any recommendations?
• A CRITICALoverview of the monetary policy stance of the central bank, including discussion of its degree of independence
- Is monetary policy loose or tight ? Examine that through LM cuve for monetary policy. If loose, is the monetary policy inflationary or not? Explain
- Is the central bank independent of the government or is it branched with the government interference?
- Is monetary policy likely to achieve the central banks objective? YES, NO? WHY? Any recommendations?
• CONCLUSION:
- Conclude about current state of the economy
- What advice you offer the government and the central bank ( the advice has to be based on evidence, based on the data collected the analysis and critique)
- Is the fiscal policy effective? Is it likeely to achieve the goverments objective? YES, NO? WHY? Any recommendations?
- is monetary policy likely to achieve the central banks objective? YES, NO? WHY? Any recommendations?
• A complete and properly formatted Bibliography (Harvard)
(Do not regard the above as a complete list. You should feel free to include any other information you believe to be relevant. Please ensure you make full use of the range of tools of macroeconomic analysis and empirical data.)