Econ20CountryProject. MACROECONOMIC EFFECTS OF THE COVID-19 PANDEMIC AND POLICY RESPONSES
Hi Everyone,
This morning, I added some resources in LATTE for the country projects and wrote up the project template. The template is a Word document (attached) that includes the project questions and can be used to write up your country project. The due date will be Friday, May 1. A project like this is about learning by doing, exploring new resources, and connecting the course material to current events. If you put in a good faith effort, you will receive full credit.
I received a number of helpful suggestions from the class via email. Let me say I have done group projects in classes in the past, so that was my default idea. However, I want you to be able to start right away. I share the concerns expressed that communications difficulties will slow things down both in organizing the groups and allowing group members to connect. Therefore, this will be an individual project.
Please let me know if you have questions. And let me conclude by thanking you for your patience during the transition to the online class. It is much appreciated.
All the best,
National economies around the world have been struggling with the macroeconomic effects of the COVID-19 pandemic and the public health responses aimed a curbing the spread of the virus. The resulting macroeconomic shock is without recent precedent. Governments have stepped in with large spending and tax changes aimed at reducing the immediate and somewhat longer term impacts of the shock. One component of these packages are traditional stimulus measures of the type we consider in class. But others are tailored the unique nature of the ongoing shock.
Your country. You will choose one country to focus on. You must choose a third country – do NOT choose the United States or your home country. Choose a country that is of interest to you and for which you will easily be able to find relevant information. Good information should be available for most developed countries and large developing countries. So, Denmark or Japan (developed) or South Africa, Brazil or India (developing) would work. Suriname, Laos or Sierra Leone (developing) would not.
The template. The template for the project with the questions and structure has been sent out via email.
Grading. Grading will be on effort. You will learn a lot simply by working on the project and completing it will demonstrate that.
Country Project Resources
Economic impact
For this you will want to find some economic statistics before the crisis (as a benchmark) to compare with more recent statistics. Macroeconomic statistics are released with a lag. For example, the most recent unemployment rate for the United States is computed from survey data collected in the week of March 8-14, before the crisis really hit. This makes it difficult to precisely gauge what conditions are like now. But additional information will come out for many countries during the period you will be working on the project and there is other information that is updated more frequently that will give you a good idea of how things are changing. The following are some useful sources of information:
Federal Reserve Economic Data (FRED). This is a go to source for U.S. macroeconomic data. It includes (sometimes with a lag) statistics for other countries. Easy to search.
Eurostat. This is a great source for statistics for EU countries.
Statistica. A useful statistics aggregator. May not have the latest monthly data for all countries.
I also recommend checking your country's macroeconomic statistics agency for the latest data. Most countries have an English language version of their website.
Let me know if you find additional resources to add to those listed above.
Macroeconomic Policy Response.
For this you will also want to find some economic statistics before the crisis (as a benchmark) to compare with more recent statistics. For example, you will want to know the interest rate set by the central bank (or exchange rate) and the budget deficit or surplus before the crisis. This information can be found in the sources listed above. Current information on interest rates and exchange rates will also be available.
You should be able to find information on recent monetary policy actions on the central bank's website and fiscal policy measures on the treasury department's website. These will also be covered in the local and sometimes international press.
COUNTRY PROJECT
MACROECONOMIC EFFECTS OF THE COVID-19 PANDEMIC AND POLICY RESPONSES
Name
Course
Date
Part I. Benchmark. This will serve as a basis for evaluating subsequent developments.
A. What were macroeconomic conditions like in your country at the start of 2020? For example, what were the rates of unemployment, inflation, and economic growth? Were there any upward or downward trends in the years before the start of 2020?[Before the COVID 19 pandemic that rapidly rose in India at around mid-March, the Centre for Monitoring Indian Economy (CMIE) pegged the unemployment rate at 7%. The rate of inflation in India has been slightly decreasing in the current decade (since 2010, current projection at 2.4 percent) as well as the country’s national debt while the Gross Domestic Product (GDP) has steadily increased with a projection of over 7% every year signifying a huge economic growth of the country. ]
B. What was macroeconomic policy like in your country at the start of 2020? For example, what was the central bank’s interest rate target (or other targets)? (Note: If your country is a member of the eurozone, you will want to focus on the actions of the European Central Bank.) What was the size of the government’s budget deficit?
[The Reserve Bank of India (RBI), which is India's Central Bank is mandated to regulate all the banking operations within the country. RBI has adopted numerous monetary policy instruments that aide in the regulation of financial aspects such as interest rates, credits, and supply of money (Indian Rupee); repo rate, reverse repo rate, bank rates, Cash Reserve Ratio (CRR), Marginal Standing Facility (MSF), Liquidity Adjustment Facility (LAF) among others. Repo rate applies to all commercial banks when borrowing from the RBI while reverse repo rate applies to RBI when borrowing from the commercial banks. As of 2019, RBI's repo rate stood at 5.15%whereas the reverse repo rate stood at 4.9%. India’s fiscal deficit for the 2019/20 financial year (FY) (circle begins from 1st of April and end on 31st March) stood at 3.8%. ]
Part II. Impact.
A. What industries are important in your country? Which of these will be/are most impacted by the crisis?
[Agriculture remains the core of India's economy, responsible for the production of locally consumed products and also for export. Agriculture and allied sectors (forestry, fishing) Gross Value Added increased by 2.1% in the FY 2019/20. Other key players in India's economy include real estate, influenced by a large population, tourism and hospitality, manufacturing, and even the banking sector. With the crippled supply chain as a result of COVID 19, the agricultural suffers a major blow. India witnessed a massive urban to rural migration as a result of unemployment and thus the real estate is also greatly impacted.]
B. What impact do you see in the macroeconomic data for your country so far relative to the benchmark you established in Part I.A.?
[As of 1st May, the unemployment rate in India had risen to approximately 27% from 7% that was observed in mid-March, before the outburst of the pandemic. The initial projection of the inflation rate of about 2.4 percent is expected...
👀 Other Visitors are Viewing These APA Essay Samples:
-
Methods of Terrorism and International Law
7 pages/≈1925 words | No Sources | Chicago | Mathematics & Economics | Coursework |