Questions from Macroeconomics

Q: Do you think corruption affects the enforcement of property rights, or

Do you think corruption affects the enforcement of property rights, or is it that badly designed institutions create opportunities for corruption? In other words, does corruption determine the enforce...

Q: Do you tend to agree more with Sachs (foreign aid should

Do you tend to agree more with Sachs (foreign aid should be increased) or with Easterly (foreign aid can do more harm than good) in the foreign aid debate? Explain your arguments.

Q: Explain why a central bank might want to intervene in the foreign

Explain why a central bank might want to intervene in the foreign exchange market to prevent an excessive appreciation of its currency, even if it previously stated that it would allow its currency to...

Q: Consider the world economy and comment on the effect of the Industrial

Consider the world economy and comment on the effect of the Industrial Revolution on the world growth rate of output per person, according to the assumptions of the Romer model.

Q: During the late 1960s, Chinese authorities imposed the precepts of the

During the late 1960s, Chinese authorities imposed the precepts of the “Cultural Revolution” on their people. As a result, almost all scholars and researchers were sent to the fields to perform manual...

Q: Michael Kremer’s research suggests that higher population might stimulate technological progress.

Michael Kremer’s research suggests that higher population might stimulate technological progress. How can higher population stimulate technological change?

Q: Discuss the validity of the following statement: “Unlike Solow’s model

Discuss the validity of the following statement: “Unlike Solow’s model, Romer’s model concludes that changes in the saving rate do not affect the sustained per-capita output growth rate.”

Q: In some countries, the president chooses the head of the central

In some countries, the president chooses the head of the central bank. The same president can fire the head of the central bank and replace him or her with another director at any time. Explain the im...

Q: Suppose a bottle of wine sells for $16 in California and

Suppose a bottle of wine sells for $16 in California and for €10 in France. Assuming a nominal exchange rate of 0.75 euro per dollar, a) calculate the real exchange rate between U.S. wine and French w...

Q: Assume that a country has pegged the value of its currency to

Assume that a country has pegged the value of its currency to another country’s currency and that the anchor country increases its interest rate. Describe the effects on the following: a) The export s...