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Since the Great Recession of the first decade of the 21st century, the deficit of the Federal government of the United States and a number of nations belonging to the European Union (PIGS) has been central in the debate over the best approach to fiscal and monetary policy.
The paper for ECO100, fall semester 2013 will be a critical essay that explores at least one policy prescription which addresses the deficit of at least one of the nations mentioned above. (For instance, the International Monetary Fund (IMF) recently posted a report on the impact its actions in Greece to help this nation reduce its deficit.
Reduction of the Greek Government's debt was a required before it could borrow from the IMF.) The paper should offer the pro and con arguments of economists, politicians and/or other experts as to the impact of the proposed policies on a government's deficit, the distribution of income and any effects it may have on economic incentives. Finally, the student should indicate which of the proposed policies they believe have the best chance of success and provide a reasoned argument supporting their decision using the economic theory discussed in the videos, the text, The Price of Inequality, and/or articles from other economists.
Papers submitted without a bibliography and an attempt to properly cite sources in the body of the document will receive a score of 0.
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