What do you think was the main problem in the country in 2019? Why?
economics
Description
1)
a.
Please fill the cells for your country (FINLAND)
for the year 2019
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2019 |
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2019 |
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GDP per capita (REAL) (USD) |
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Real Interest Rate |
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GDP per capita (current) (USD) |
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Current Account Balance (% of GDP) |
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Inflation |
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Export (% of GDP) |
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Unemployment |
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Import (% of GDP) |
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Growth rate |
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Labor Force Participation Rate (total) |
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Budget Balance (% of GDP) |
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Labor Force Participation Rate (female) |
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Public Debt (% of GDP) |
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FDI inflow (% of GDP) |
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Nominal Interest Rate |
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Any additional indicator you picked: |
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b.
What do you think was the main problem in the
country in 2019? Why? (5 points)
c.
As a consultant to policy maker, please describe
what policy would you suggest to solve this problem? Why and how your suggestion would solve the
problem (5 points)
d.
What would be the negative outcomes of your
policy suggestion? Please explain clearly (10 points)
2)
Please examine data in your country If it
satisfies the following conditions. Explain how you evaluate if these
conditions hold in your country (5 points each)
a.
Marshall- Lerner Condition
b.
Phillips Curve
c.
Okun’s Law
3)
a.
If your country is using flexible or floating
exchange rate against USD: Please draw a
simple interest parity relationship for your country. And evaluate the graph
and its potential consequences in economy.
b.
If your country is using a fixed exchange rate
regime against USD: Please explain how interest parity graph looks like? Please
evaluate the policy changes in your country when FED changes its own monetary
policy.
c.
if your country is USA, then your foreign
currency is EURO. You can also use EURO as foreign currency instead of USD as
long as you explain why.
In
order to draw interest parity, please use your own data. To create data you
need to create a table for exchange rate and interest rate for some period of
time. You can use days or year, it is up to you. Using years is a better option
since interest rates do not change every day or every month. IF you are using
years take the average values for interest rate and exchange rate. Another
option is using a specific day in a year (Ii.e., JAN 1st ) and taking the values in that day. Please
provide that table in your assignment. (10
points)
4)
Please evaluate the impact of COVID-19 in your
country. Please suggest some policies to overcome the problems. Compare the
policies you suggested in 2019 (1st question) and this one. Please use your own words. (5 points)
