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ECON 221: MACROECONOMICS IN THE WORLD ECONOMY

The Country Project consists of two parts: (i) Data Analysis and (ii) Policy Recommendation.
Part One: Data Analysis

  1. You will use data from the IMF’s World Economic Outlook (WEO) database. Currently, the latest edition is October 2010. To access the dataset, go to
    http://www.imf.org/external/pubs/ft/weo/2010/02/weodata/weoselgr.aspx
    Alternatively, follow the path:
    IMF web page (www.imf.org) ? Data and Statistics ?
    World Economic Outlook Database for October 2010 ?
    Download WEO data: By countries (country-level data)
  2. Select one of the “Advanced Economies” or one of the “Emerging and Developing Economies”. Collect available data series for the 5-year period 2004-2008. Analyze the data focusing on the presentation of major macroeconomic variables: real GDP growth, inflation, unemployment, government budget, current account, etc.
    Part Two: Policy Recommendation
  3. Identify one macroeconomic problem that you think is the most pressing (i.e., low growth, high inflation, a large deficit, etc) for the country of your choice.
  4. Suggest fiscal or monetary policies that can address this problem. Use the IS/LM/FE and/or the AD/AS models to derive the short-run and long-run effects of these policies on the identified problem and on the rest of the macroeconomy.
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