Read the CASE ANALYSIS: Argentina and the Limits to Macroeconomic Policy on page 266
Write a 4-6 page paper (1000 or more words) in APA format in response to the questions:
Provide a brief overview of this case analysis; summarize the key points (no more than a page, of a page is better for this summary).
Research current economic data on Argentina. (You may find some information here ).
Explain why a currency devaluation, whether intentional or not, would be a problem.
The economic data of the current account to savings, investment, and the general government budget balance are calculated at the website listed under Item b. Discuss the pros and cons of current account deficits.
Does it appear that Argentinas current economic crisis is caused by economic imbalances or caused by volatile capital flows?
Consider the question: Does this mean that developing countries cannot use expansionary macroeconomic policies? Provide an answer to this question.
Below is a recommended outline.
Cover page
Introduction
A thesis statement
Purpose of paper
Overview of paper
Body (Cite sources using in-text citations.)
Provide an overview of this case analysis; summarize the key points
Explain why a currency devaluation, whether intentional or not, would be a problem.
Describe the current financial situation in the country. Analyze the cause of the problem: economic imbalances or volatile capital flows
Consider the question: Does this mean that developing countries cannot use expansionary macroeconomic policies? Provide an answer to this question.
Conclusion Summary of main points (from the body)
Lessons Learned and Recommendations
References List the references you cited in the text of your paper according to APA format.