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Avoid the Hustle

Mexico

Category: Economics

Must have the book” international macroeconomics “3rd edition by Feenstra Taylor.

1. Find the Exchange rate data/graph of Mexico in relevant year which contains 10 years before 1994 and 10 years after 1994.
2.Find the inflation and real growth data/graph in your country, during the same time period. Compare all three graphs (do you see inflation move together with depreciation -your exchange rate must depreciate in periods of high inflation-, what happens to real growth in periods of higher inflation?) Try to compare what we learned in class with your graphs.
3.find data/graph on government debt and deficits on relevant years. (recall that deficit is the difference between spending and income in one particular year, debt is the accumulation of deficits -total amount the country owe-). It is best if you find debt, or deficits, as a percent of GDP.

4.write 1 to 2 pages analysis of what you have found. Look at all your data. How does the theory learned in class explain what you observe? What questions does it raise? What do you speculate happened? In particular use the analysis of Chapter 4 and the IS-LM-FX model that you will learn in chapter 7 to explain the events in your country-crisis.

5.Find out what actually happened. Brief economic history of your crisis. Look and cite books/articles that you can find online. Do not cite wikipedia! Point to the data, tie the history to the graphs you have done. If your data raises questions to the current explainations given, point that out. For the average crisis this should take about 3 pages, no need for more than 5.

Make sure all tables and figures are titled. Number the tables and figures/graphs so that you can refer to them (as my figure 1 shows….). The number of the tables always goes on top (table 1, table 2…., then the table has its title and content), the figures have their number under the image (Figure 1, figure 2…). Look at any book/article to see the proper way of formating a research. Citation is important.