read carefully the file that i upload you.
Use the e-book of the course to do the essay (this essay cover all the materials of the course, hence this book)
3 pages of essay. All the reference and the draws must be in the 4 page
You should use the pre-formatted assignment form without changing any settings (Times New Roman, font size 12, 1.15 line spacing, indentation for new paragraphs without additional space, and 2.5 margins on all sides.
in the first file that i upload you will find an article, generated by chatgpt:
it is argued that Europe is strategically using its monetary policy to increase its competitiveness in international markets. This article may sound genuine and ok, but on closer inspection you can see why we still need trained international economists like yourself to distinguish good from bad economics. You should not assume that any of the above article is true !!! or based in a correct interpretation of the models and theories you have learned during our course. Let us do this right.
First, 1. use the short-run IS-LM-FX model for the EU to draw the effects of an expansionary monetary policy stance in the EU on the level of EU output, interest rate and exchange rate. What is the predicted effect on EU net exports in that model? Does that correspond with the analysis provided?
Then, 2. explain, using graphs like figure 8-7 in the textbook, how a trade agreement between two big countries would affect producer/exporter and consumer surplus in Europe. Draw Europe as the home market in the left-hand panel and use the right-hand panel for the world (here US and EU). Assume that Europe exports the good considered (manufactures) and tariffs on US and EU imports are lifted in the trade agreement. Again, what are the effects on European exports? Do we need a devaluated euro to achieve that outcome?
3. Now critically and systematically go over the text and point out the mistakes and misinterpretations that chatGPT has made. Carefully and precisely go over the text and point out the imprecisions, incomplete arguments, and vague argumentations. It is a good idea to go paragraph by paragraph. How would you interpret and link the concepts and theories mentioned?
4. Finally, comment on the conclusion thatthis article draws for monetary policy and the ECB mandate. Given its mandate and the theories discussed, what policy stance would you propose the ECB take?