Eurozone and Macroeconomic goals
Write a report that assess the role of the Eurozone institutions to achieve macroeconomic goals.
The report should include the following sections:
• Cover Page: Title, Course, Name of Student
• Table of Contents
• Section 1. (25%) The Eurogroup is debating EU-wide unemployment insurance scheme.
o Define the different types of unemployment and discuss which one is the target of such a measure.
o Analyze the possible effects of this measure using the concepts delivered in class.
• Section 2. (25%) Monetary authorities.
o In the Eurozone, which institution oversees monetary policy, and which one controls fiscal policy?
The main goal of the European Central Bank is controlling the inflation. Why it is so important? To answer this question:
o define aggregate demand and aggregate supply in the long-run and short-run (use graphs), and
o explain the main effects of rising prices in the economy using the concepts delivered in class.
• Section 3. (25%) During the 2008 crisis, the Eurozone countries applied different strategies to prevent a fall of aggregate demand.
o Provide two examples of fiscal policies in face of an economic crisis and discuss their positive and negative effects on aggregate demand. Use the concepts of “multiplier effect” and “crowding-out effect” delivered in class.
• Section 4. (25%) There is evidence of an increasing protectionism in global trade (US and China trade war), which might cause a fall in global trade.
o Explain what the expected impact of the fall in international trade on the Eurozone economy might be. Use the AD/AS model and the concepts delivered in unit 8. This section must include a written explanation and charts.
• Bibliography
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