How monetary policy can be used to influence the economics

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Reference no: EM131473965

The Global Economy and Financial System

Assignment
1) Using an AS/AD economic model illustrate and explain how monetary policy and fiscal policy can be used to influence the level of economic activity and the price level.

2)
- All member state of the Eurozone lose monetary sovereignty
- The Fiscal Compact limits national independence regarding the implementation of fiscal policy
a) Explain what the Fiscal Compact is.
b) Explain the purpose of the Fiscal Compact and why it was considered necessary.
c) Some argue that the Fiscal Compact is excessively restrictive regarding the formulation of fiscal policy at the national level. Would you agree/disagree? Explain your answer.
d) The loss of monetary sovereignty could be a major handicap for Eurozone countries if they were struggling with recession. Discuss this point and indicate whether you agree or disagree.

3) The current monetary policy of the European Central Bank (ECB) is referred to as "quantitative easing".
a) Explain the nature of this policy and how it is being implemented.
b) Explain clearly the objectives of this policy (ie what is the ECB trying to achieve).
c) Evaluate the success of this policy (ie to what extent have the objectives been achieved since the policy was begun).

Outcomes
- understand the nature of European economic integration and critically evaluate the implications for member states economic sovereignty.
- A critical evaluation of macroeconomic policy at home and abroad.

References:
- ECB
- European Commission and the fiscal compact

Verified Expert

This assignment was about how the eurozone countries were affected with the fiscal policies and monetary policies and how they overcame their financial crisis situation. The answer sheet also contains how the ECB (European Central Bank) developed their policy that emphasizes over stabilizing price and how it contributes in the development of the national economy.

Reference no: EM131473965

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Reviews

inf1473965

5/15/2017 5:08:16 AM

From my perspective, such expert way to deal with the fundamental part of the business as client service, can just prompt high consumer loyalty, faithfulness and organization achievement.

inf1473965

5/15/2017 5:07:49 AM

This is the assignment it word count is 2500 and it's European economic based..In assignment task 2 (question 2.1 point C is missing the description. It's only bullet point written there..would you mind to review it please. 2500 words .and please I want it like last assignment properly reference and content and formatted. I have attached the question with this mail.

len1473965

4/25/2017 7:56:22 AM

This is the assignment it word count is 2500 and it's European economic based..there is a link as a help on sheet. Please find enclosed attachment. • understand the nature of European economic integration and critically evaluate the implications for member states' economic sovereignty. • A critical evaluation of macroeconomic policy at home and abroad. References: • ECB • European Commission and the fiscal compact • Lecture notes • Recommended text • A google search for "fiscal compact" and "quantitative easing" will generate lots of references.

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