Paper assignment for International Monetary Policy

Each student assigned a unique foreign country.(The country is Monaco)The United States will be the base country for most students.Students who are studying a country which trades primarily with the European Union may want to use Germany as the base country.

Students should use approximately 10-15 years of data (if available).You may use your judgement on which years to use, but more recent years are preferable.

FIRST DRAFT (2 pages.You must have a thesis statement).

Goals:Briefly describe the economic state of your country using trends in GDP, government debt as a fraction of GDP, net exports position (surplus or deficit, relative to GDP), patterns of investment, and relative movement in equity index.Requirements:

• 2 page descriptive analysis;
• Graph of your country’s real GDP growth rate relative to US real GDP growth rate (either plot rates- which should be of similar magnitudes, or stack two graphs of levels);
• Graph of Real GDP and Real Current Account over time (stacked);
• Graph of Real GDP and Real Investment over time (stacked);
• Graph of Government Debt level and yield over time (stacked, or dual axes);
• Graph of your country’s Government Debt Yield relative to US Government Debt Yield;
• Graph of your country’s equity index relative to US equity index (again, either indices, rates of growth or stacked values);
• List of the codes of each series you used in your graphs, and the long labels, noting the source (i.e. either World Development Indicators or IMF Financial Data).
• Notes on Graphs

  Only use the sources below for data:

  World Development Indicators

  
  http://databank.worldbank.org/data/reports.aspx?source=world-development-indicators

  International Financial Statistics

  http://data.imf.org/?sk=4C514D48-B6BA-49ED-8AB9-52B0C1A0179B

  If you cannot find the data in either of these, you may look
  at St. Louis Federal Reserve database (FRED)

  
  https://fred.stlouisfed.org/

  All of these sites allow you to download raw
  data or charts. ONLY DOWNLOAD RAW
  DATA.

• On this point, make sure that you plot data which has been
  adjusted for inflation. Either data
  which has been adjusted already (data in constant rather than current dollars),
  or ratios of nominal variables. If two
  nominal variables are both rising with prices, their ratio will cancel out this
  effect.

  Each graph should have a number and a title. You should refer to the relevant graph
  numbers within the body of the text as you discuss it.