Core Macroeconomics, Hilary Term 2017
Week 5: The Open Economy: Shocks and Imbalances
This week we continue to develop our understanding of the open economy, sticking fairly closely to the textbook and lecture models.
Readings
Open economy lecture notes by Rui Esteves.
C&S Chapters 11-12.
Assignment
This essay is Question 1 from C&S Chapter 12, end of chapter problems
and questions. In your answer please present relevant empirical evidence in
addition to discussing things from a theoretical perspective. Your essay should
assess the following claim:
"The ECB's success in achieving low and stable inflation during the Eurozone's
first decade disguised the build-up of dangerous imbalances among the members."