Considering the macroeconomic policy interventions in the Turkish economy in the 2020's, discuss to what extent...
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Considering the macroeconomic policy interventions in the Turkish economy in the 2020's, discuss to what extent the expectations of the text book application of the IS-LM and interest rate parity framework in Q.2 above have been fulfilled with respect to a. Domestic investment spending I? Answer by showing the net impact of the policy on the intended investment schedule graph below, using the concepts of the Keynesian accelerator principle, different sensitivities of residential investment vs. non-residential investment to interest rates. b. Net export spending NX and Balance of Payments? Answer using the definition of the real exchange rate and the concept of exchange rate pass-through. Output Y and unemployment U? C. d. The newly appointed Minister for the Economy Mehmet Şimşek has stated as he started on the job today (5 June 2023) the following: "Ağır bir görev verildiğini biliyorum. Türkiye 'nin rasyonel bir zemine dönme dışında bir seçeneği kalmamıştır." "I know I am appointed to a tough task. Türkiye has no choice but to return to a rational basis." What does the Minister's statement show about his own assessment of the economic policies implemented by his predecessors? Explain in a few sentences based on the macroeconomic debates we discussed in class. terest rate (r) All else equal, if the interest rates falls, intended investment should rise. Intended Investment (4) Considering the macroeconomic policy interventions in the Turkish economy in the 2020's, discuss to what extent the expectations of the text book application of the IS-LM and interest rate parity framework in Q.2 above have been fulfilled with respect to a. Domestic investment spending I? Answer by showing the net impact of the policy on the intended investment schedule graph below, using the concepts of the Keynesian accelerator principle, different sensitivities of residential investment vs. non-residential investment to interest rates. b. Net export spending NX and Balance of Payments? Answer using the definition of the real exchange rate and the concept of exchange rate pass-through. Output Y and unemployment U? C. d. The newly appointed Minister for the Economy Mehmet Şimşek has stated as he started on the job today (5 June 2023) the following: "Ağır bir görev verildiğini biliyorum. Türkiye 'nin rasyonel bir zemine dönme dışında bir seçeneği kalmamıştır." "I know I am appointed to a tough task. Türkiye has no choice but to return to a rational basis." What does the Minister's statement show about his own assessment of the economic policies implemented by his predecessors? Explain in a few sentences based on the macroeconomic debates we discussed in class. terest rate (r) All else equal, if the interest rates falls, intended investment should rise. Intended Investment (4)
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Related Book For
Macroeconomics
ISBN: 978-1464168505
5th Canadian Edition
Authors: N. Gregory Mankiw, William M. Scarth
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