Total Pages: 12 Words: 3091 Bibliography: 5 Citation Style: APA Document Type: Essay
Essay Instructions: Write a 12 page paper modeled as a policy recommendation in which you:
Briefly describe the economic problem you have selected. ECONOMIC PROBLEM is how to decrease unemployment in USA
Discuss the major impact to society of the problem.
Design a proposed economic policy solution to the problem.
Discuss how economic theory predicts the policy would work.
Discuss how the economic policy you propose would impact the market or solve the economic problem.
Provide references to at least five (5) peer-reviewed articles to support your proposed policy.
Your assignment must:
Be typed, double spaced, using Times New Roman font (size 12), with one-inch margins on all sides; references must follow APA or school-specific format. Check with your professor for any additional instructions.
Include a cover page containing the title of the assignment, the student?s name, the professor?s name, the course title, and the date. The cover page and the reference page are not included in the required page length.
The specific Course Learning Outcomes associated with this assignment are:
Analyze the economic impact of major social problems and issues such as poverty, discrimination, crime, income distribution, the role of government, and other major issues.
Explain how the economic behavior of individuals, businesses, and governments can affect economic growth, social well-being, and the quality of life.
Use economic analysis to describe the social costs and benefits of government and public policy choices.
Identify the relationship between economic activity and the resources available in a society.
Appraise the role of large firms in terms of economic performance and social impact.
Assess the major economic and related social issues associated with production, resource markets, and international trade.
Use technology and information resources to research economic problems and issues.
Write clearly and concisely about economic problems and issues using proper writing mechanics
Grading for this assignment will be based on answer quality, logic/organization of the paper, and language and writing skills, using the following rubric.
Excerpt From Essay:
Essay Instructions: Paper features:
The paper must include the following:
-The introduction : Brief Economic Information of Argentina" I prefer if you introduce it as story "
-The body's : discuses the problem through processing and analysis of the facts only
-The Conclusion : you have to show up your opinion in this section
-The Appendix: the paper should include for example Dates, Tables and Graphs, and you have put it all in the last page of the paper.
-Bibliography: you must use only " Academic Recourses ", NO cut and paste , you have to Cite all the information's that used
-10 page length
This is my outline "but you can make change on it or use your own outline if it's better":
- The introduction
- Background of the crisis
- The Crisis of Argentina
- Deregulated the economy
- Factors Contributing to the Crisis
- The IMF & the Crisis
- The Conclusion
With a population of around 40 million, Argentina returned to elected civilian democracy in 1983 after seven years of harsh military rule. President Raul Alfonsin successfully consolidated the government; brought issues like human rights back to the public debate; and made the case for trade liberalization, deregulation, and privatization. However, Alfonsin was lacked the leadership skills necessary to carry out the economic reforms Argentina sought. Argentina at that time fell into hyperinflation. Inflation rose to 672 percent in 1985, and government expenditures increased from 11 percent of gross domestic product (GDP) in 1984 to 18 percent in 1985. The failure of the Argentine government to respond effectively to its economic problems contributed to an erosion of investor confidence, massive capital flight, devaluation of the peso, and hyperinflation of 3,080 percent in 1989 and 2,314 percent in 1990. As a result, president Alfonsin resigned five months before the end of his term in 1989. Carlos Menem, who had been elected president on a traditionally protectionist and took office. Menem surprised the country by announcing major plans to open the economy. The reforms he initiated during his first administration gave an immediate boost to the economy and ushered in a period of prosperity with the promise of change. However, Second term for Menem met with disappointment. The economy's decline exposed the limited nature of the reforms and the government's failure to open the market completely. Thus, Argentina faced a deep recession, and prospects of economic improvement are in doubt .
President Menem instituted several serious reforms during his first term.In 1989 Argentinafell into hyperinflation. Inflation reached a monthly rate of 95% in March 1990, and theeconomy collapsed as residents scrambled to find alternative means for setting prices, maintaining savings, and doing economic transactions. A sharp contraction in monetary and fiscal policy brought inflation down to a monthly rate of 11% in April 1990. Further reductions in inflation were not achieved in 1990, and GDP, which fell by 6% in1989, did not grow in 1990. A new initiative in 1991 to establish macroeconomic stability and to improve policy credibility announced its Convertibility Program. The strategy adopted in order to eliminate hyperinflation and reverse the demonetization process was based on the designation of the U.S. dollar as legal tender. Convertibility Program established a currency board with an explicitly legislated, fixed exchange rate of 10,000 Australes (Argentina's old currency) per U.S. dollar. Any change in the exchange rate could be enacted only with new legislation. The currency board was required to provide full backing in U.S. dollars for any issue of Australes, and subsequently for the new peso. Moreover, the U.S. dollar was established as legal tender within Argentina. In 1989 when President elect Carlos Menem took office, the attempt of the government was to stabilize inflation failed, resulting in further depreciation of the peso and a serious reduction in the Central Bank's foreign currency reserves. However, unforeseen was the movements of the U.S. dollar in foreign exchange markets. The U.S. dollar has maintained extremely high valuation on international markets throughout the late 1990s, perhaps because of the desirability of U.S. financial assets such as stocks and bonds to international investors. Resulting from this the U.S. has run an extremely large trade deficit. In essence, a currency board system restricts the government's ability to issue notes and coins without a full backup of foreign reserves. Domestic notes and coins are fully convertible into the reserve currency at the fixed rate. Under this law, the government's liabilities could not be financed by printing money. This reform helped to arrest the hyperinflation problem immediately, and that what they were looking for to reform the economy system. in December 2001, Argentina suspended payments on its external debt and restricted deposit withdraw. In January 2002, it abandoned its peg to the U.S. dollar. Reflecting continuing uncertainty about financial conditions, interest rates have continued to rise and the currency has depreciated 356% against the U.S. dollar. In 2002 the impact of the Argentine crisis has been severe. Output is forecast to decline 15% and inflation to rise to 72%.Argentine citizens have been particularly outraged by the government's freeze on bank deposits, an important contributing cause of the uprising of December 2001.
Excerpt From Essay:
Essay Instructions: *The term paper asks us to delineate economic issues underlying a particular topic related to the area of growth and development.
- I listed possible topics you could write about for each model. You could pick one of the models you are most familiar with and write about the example and relate it to the model.
Possible topics could be about economic issues and relate that economic issue with one of below model (I personally think number 1 could be more interesting if there are resources for the example)
1) Big Push (ex. South Korea’s president Jung Hee Park’s new policies and their impact on economy and creation of chaebols ?" for example, you could talk about how his policies led to coordination in worker’s education effort and entrepreneur’s R&D effort, leading to a big push.)
2) Activation of modern industry (which basically talks about needing enough funding or skilled labor to activate an industry- and perfect adoption of advanced technology, weak preference bias or small modern capital investment barriers) ?" for example, you could talk about how South Korea’s IT industry could take off (what policies/factors led to enough funding in Korea’s IT industry…current situation of Korean IT industry and it’s economic problems)
*For help, I listed some of the characteristics of the above 2 models
1) Big Push:
“coordinated investment” is the basis of the concept of the big push.
-When many sectors have simultaneously adopted increasing returns technologies, they would all create income as well as demand for goods in other forward and backward linked sectors
-such income creation and demand enhancement would then enlarge the market, leading to industrialization.
The arguments are therefore rooted in:
-interactions between firms and across industries
-interactions between demands and supplies
Thus, there is a scale barrier to overcome, which requires “big push” ?" the force of big push could be:
-expectations-driven (self-fulfilling prophecies)
-entrepreneur’s R&D is increasing in worker’s education
-strategic complementarity: worker’s education effort, v, and entrepreneur’s R&D effort reinforce each other
-Equilibrium: high, low or multiple equilibria
-coordinated worker investment in education and entrepreneur investment in R&D can generate a big push over the required threshold Vc, giving a high-human capital and high-output equilibrium
-lacking such coordination, the equilibrium features low-human capital and low-output
-expectations are crucial:
-if workers expect entrepreneurs to invest in R&D, they exert V(high)>V(critical)
-if entrepreneurs expect workers to exert V(high)>V(critical), they invest.
2) Activation of a Modern Industry: Wang and Xie (2004)
The key issue to be addressed is to explore the important channels through which a modern industry is activated. They key features considered are:
-production in the modern industry requires high-skilled labor in addition to new technologies
-the modern sector needs industrial coordination to overcome the scale barrier concerned by big push
-the modern goods are not necessary for survival
-traditional industry: Y1 = (A1)(K1^a1)(L1^1-a1)
-modern industry: Y2 = (A2)(K2^a2)(L2^1-a2)(K-bar^1-a2)
-L1 can be either unskilled or skilled, whereas L2 must be skilled
-A2>A1: modern sector is more technologically advanced
-a2>a1: modern sector is more capital intensive (manufacturing vs. agriculture)
-there is an uncompensated positive knowledge spillovers in the production of the modern goods represented by K-bar as in Romer (1986)
-as a result of the presence of uncompensated positive knowledge spillovers, there is a scale barrier in the sense that the modern sector’s production is not as effective when its size is too small ?" that is, the coordination issues in big push theory can be captured
-The modern sector is not operative if either K2 = 0 (insufficient funding to be allocated to modern production) or L2 = 0 (unattractive wage for skilled labor to work in modern sector)
-Industry 2 can become operative only if it is sufficiently productive to attract funding
-the modern sector remains inactive with:
-insufficient funding or skilled labor
-imperfect adoption of advanced technology
-strong preference bias
-large modern capital investment barriers
-this above condition is necessary but not sufficient, because it considers only capital but not labor allocation, which is driven by the relative wage of modern to traditional industry
-in order for the modern sector to attract skilled labor, W2/W1 must exceed 1, that is the skilled can earn higher wages in the modern sector than working as unskilled in the traditional sector
-this condition is more likely to hold true with
-better modern technology (A2)
-weaker preference bias (theta)
-when this condition is met, the labor markets are segmented
-all the unskilled work in the traditional sector (L1=N1)
-all the skilled work in the modern sector (L2=N2), earning W2>W1
-In summary, we have
-stage 1: W2/W1 is smaller than 0: funding is insufficient and industry 2 is unprofitable
-stage 2: W2/W1 is bigger than 0 but smaller than 1: the relative wage is too low for skilled workers to participate in industry 2
-stage 3: W2/W1 is bigger than 1: the modern industry is activated
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Excerpt From Essay:
Essay Instructions: In his famous polemic The Economic Consequences of the Peace, Keynes argued that the economic system that arose in Western Europe after 1870 was “intensely unusual, unstable, complicated, unreliable, [and] temporary.” Explain. In his view, how did World War I and its aftermath worsen the problem? In your answer, explain each of Keynes’ four sources of potential instability??"population, organization, psychology, and the relationship between the ‘old world’ and the “new world”??"and how Keynes thought the War exacerbated Europe’s economic problems.
What parts of Keynes’ analysis do you think V.I. Lenin would reject? Explain.
Roughly 3 pages on Keynes and 1 page on Lenin if possible.
There are faxes for this order.
Excerpt From Essay:
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