As I settle in for the night to read your first batch of essays, here are some topics for the second set of essays, due at the start of week 7. Email me if you'd like to write an essay to a topic of your own choosing, please see the guidelines on essay writing.
- Discuss the development of coordinated fiscal policy within EU member states, and lay out possible costs and benefits of fiscal councils in the EU.
- Outline the potential costs of asymmetric adjustments within a monetary union.
- Define the real effective exchange rate. In a simple 2 country macroeconomic model, what effects will a sudden increase in inflation in the home country have on the trade balance with the other country? Give 2 real world examples.