EC3012 International Finance

Midterm group written assignment 2022

Weight: 30%

Essay title: Britain’s macroeconomic contexts when abandoning the Gold Exchange
Standard (1931) and today: A model-based comparison

Instructions: Based on the readings assigned for this course so far, as well as on
other sources, that you are expected to find through your independent research, carry
out a dynamic comparison of the macroeconomic contexts of Britain in the early
1930’s and today using model(s) covered during the course.

Your essay should consist of three parts. Please use the same subtitles as below to
identify each part.

Introduction: Main macroeconomic features of the UK in the 1930’s and today.

You are expected to put together a brief introduction in which you summarise the
macroeconomic features that characterised Britain in the 1930’s and those which
characterise Britain today. You may use synoptic tables to aid your analysis and to
help you keep within the word limit. You are expected to carry out some independent
research on the topic Please reference all bibliographical sources consulted.
(Suggested length: 300-400 words).

Body: Currency problems in 1930’s Britain and today, explained through

model(s)
-Select model(s) covered during the course that you think are best at explaining the
currency problems faced by Britain in the two periods.
-Point out the way in which each model’s variables will represent different aspects
and elements of British sovereign debt and currency issues in the 1930’s and today.
-Determine the assumptions that need to be made.
-Use diagrams and explain verbally and graphically the dynamics of your analysis.
Place particular focus on the interactions between fiscal and monetary policies.
(Suggested length:250-350 words. Note: diagrams and equations do not count towards
the word limit).

Conclusions:
-Sum up what you have been able to conclude through your model-based analysis
about the similarities and differences between the two periods regarding sovereign
debt and currency problems in Britain.
-By focusing on the model(s) that you chose, discuss the strength and level of realism
of each one of the model assumptions within the context of the problems in question.
-Assess which macroeconomic elements require a more complex model to be
explained properly.
-Point out any important variables omitted by the model (s), which you think should
be included in order to achieve a more comprehensive picture of the sovereign debt
and currency problems faced by Britain during the two periods in question.
(Suggested length: 300-400 words).
Bibliography:
- Please include a bibliography and reference all sources used. You may use any
referencing system as long as it is consistent. (Bibliography and references do not
count towards the word limit).

Overall word limit:1000 words (+ 10%).

Submission date: 29 November 2022 (submission box will close at 16:00).

EC3012 marking criteria Midterm 2022

Criterion Generic descriptor Weighting

Knowledge and Level of understanding of
understanding key concepts and formulae. 10%
Application Suitability of the model
chosen to analyse the
relevant context. Correct
assessment of the relevant 30%
variables and the
phenomena they represent.
Analysis Level of use of theories to
analyse real-world
phenomena. Logical
coherence in the 30%
explanation of the model
dynamics.
Judgement Level of assessment of the
explanatory attributes of
the model within the
relevant context. Level of
critical insight in the 20%
conclusions drawn from the
exercise as a whole.
Academic presentation Consistency and accuracy in
referencing. Quality of
sources consulted. 10%