Question: P 1. A negative productivity shock leads to a current account deficit. Discuss this statement using a simple intertemporal model (2-period model). Examine first the

deficit." Discuss this statement using a simple intertemporal model (2-period model). Examine

1. "A negative productivity shock leads to a current account deficit." Discuss this statement using a simple intertemporal model (2-period model). Examine first the case when the shock is transitory and second, the case when the shock is permanent. Assume that initial foreign debt is zero

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3. Give away need to know information and you will get back information that you find useful.

4. Present multiple themes at once. Then you will get to know a little about how others think, when some of the themes are rejected.

5. Get a third party to mediate, so that both parties have the opportunity to go back to their original negotiating point that they had before the third party put forward his/her proposal.