Economics assignment on the case study - The Euro in crisis: Decision Time at the European Central Bank

•   The following excerpt is from the case study “The Euro in crisis: Decision Time at the European Central Bank”. (distributed in the class)

“……a bailout for Greece would send a signal to other indebted member states that the ECB would step in if private lenders become nervous.”

Answer the following questions with appropriate diagram and using AD-AS model, Money market, aggregate expenditure model, and forex market (as required). For part a, b and c appropriate diagrams are MUST. Else points will be deducted.

   •   When ECB went out for bail out then what was expected to happen to the interest rate in Greece? (10 points)


•   Comment on the expected outcome of this policy on behalf of ECB. Provide diagram and detailed explanation on output and prices. (10 points)


•   If government of Greece also increases (assume) the expenditure (expansionary fiscal policy) then what do you think can potentially happen to prices? Provide the relevant diagram and explain your answer.(10 points)



   •   Overall do you think that bail out of Greece is healthy policy from the perspective of ECB? Answer this one in context of the Case study. ( 5 points)


   •   Explain why a group of economist thinks that a common currency like Euro for the region is not a good idea. Restrict your answer to the concepts discussed in the class and the case study. Page limit is one page. (5 points)








Looking for a Solution to the Assignment above, we have a team of experts who have a complete expertise in completing this assignment within your specified deadline. The assignment will be uniquely made for you and will be delivered along with Turnitin Plagiarism report.

• Order Now Get a quote for custom assignment