Tag: Macroeconomics

Briefly explain the main economic rationale behind the Swiss National Bank’s (SNB) decision to intervene in the foreign exchange market in response to such a strong demand for franc.

Macroeconomics: theory and applications

You must answer ALL questions below.

Using an appropriate version of the IS/LM/BP model, demonstrate which of the curves in the model would shift in response to the fall in the world interest rates (iw). Also, show how this would affect Switzerland’s BP position: you must clearly explain if it is a BP surplus or a BP deficit. (15 Marks)

Briefly explain the main economic rationale behind the Swiss National Bank’s (SNB) decision to intervene in the foreign exchange market in response to such a strong demand for franc. (15 Marks)

The IS/LM/FE model predicts that the BP disequilibrium (i.e. BP≠0) in Question 1 should eventually disappear and BP must return to zero (BP=0). Explain the underlying transmission mechanism that ensures this adjustment when:

SNB decides to peg the national currency as explained in the introduction, and
(15 Marks)

SNB decides not to intervene, i.e. it allows the value of franc to be determined by market forces.
(15 Marks)

In addition to the two scenarios in Question 3, what other policy options are available for the Swiss authorities if they want to achieve BP=0? Discuss the pros and cons of each approach.
(15 Marks)

Explain why SBN abandoned its policy in 2015 and why the franc/Euro exchange rate fell so sharply as a result.
(10 Marks)

Some economists argue SNB’s intervention in the exchange market was successful while others disagree about the success of the intervention policy. Critically discuss both sides of the arguments.
(15 Marks

What type of study was it–a survey, case study, correlational study, or experiment?Do you see any problems with their conclusions or with the way the article interpreted the study’s conclusions?

Research study about Psychology

Popular media is full of stories about the latest and greatest scientific research; on the evening news, in magazines, in newspapers, and of course blogs. It’s important to evaluate these results with a critical eye.

For this assignment, go through a current newspaper (online or hard copy) and find an article that reports the results of a research study about psychology or a related field (medicine, economics, neuroscience, behavioral biology etc.).

Answer the following questions about the study as reported in the article:

(a) What type of study was it–a survey, case study, correlational study, or experiment?

(b) What variables did the researchers manipulate and/or measure?

(c) What did the researchers find? What did they conclude? and

(d) Do you see any problems with their conclusions or with the way the article interpreted the study’s conclusions?

Consider the macroeconomic environment of Canada and examine the impacts of Canada’s economic policies during the COVID-19 pandemic on the performance of business including but not limited to Starbucks. Include some insights into the implications of the imposed policies on the future economic conditions in Canada.

Macroeconomics

Consider the macroeconomic environment of Canada and examine the impacts of Canada’s economic policies during the COVID-19 pandemic on the performance of business including but not limited to Starbucks. Include some insights into the implications of the imposed policies on the future economic conditions in Canada.