Professional Documents
Culture Documents
Economists' fascination with the description and interpretation of the severity and
duration of the Great Depression has not flagged in over seven decades since its onset.
What began as an investigation centering on the U.S. Depression experience has
broadened in recent years to cover the experience of countries around the world.
• What were the causes of the Great Depression, what were the mistakes, how did
we get out of it?
• What are the lessons learnt for countries around the globe?
• What would you do, today, in the U.S. (to get out of the recession)?
In 1981, Ronald Reagan confronted a set of economic problems that seem intractable.
The case study would be an analysis of Reagan's program, and especially the assumptions
that underlie his policy measures.
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B. Alternative Economic Development Growth Strategies
Japan
For more than 50 years, Japan had one of the most impressive performances in the world.
This case study sould highlight how Japan achieved the high rates of growth.
Singapore
For more than 25 years, Singapore has achieved virtually unprecedented levels of real
economic growth. In the early 1990's, however, the island nation faced apparent
diminishing returns to its previous strategy, with new competitive pressures, changing
social issues, and new leadership.
• How do you explain Singapore's performance since 1965?
• Why has GDP growth been faster than most developing countries?
• What is the role of saving and investment is Singapore's development?
• How has productivity growth been attained and how has it contributed to the
economy?
• Should the Singaporean government be changing its strategy?
Is Chile clearly in the wrong continent? But it wasn't like the current situation 20 years
ago. What are the sources of Chile's incredible performance?
By the late 1980's the policies of de la Madrid and Salinas were widely regarded as
showcases of stabilization and reform. However, by the end of Salinas' term, Rudiger
Dornbusch tells the Mexican government that the Peso must be devalued. A devaluation
at the end of 1994 results in chaos.
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• What caused the exchange rate crisis of 1995?
• Was the United States right in lending to Mexico during the crisis?
• What are the lessons learnt from this crisis?
Don't cry for me Argentina.; The peso... really sucks; The unemployment,
the fiscal problems; Presidents failing; Now we're submerging….
(Can you hear the music on the background?)
By the end of 1997, it was clear that the Asian tigers had done something wrong? Well
before the crises several economists predicted that, but were their timing clearly wrong?
A lot has been said using the obvious wisdom, but really little has been fully understood.
• What were the reasons behind the financial crises? Self-fulfilling or
Fundamentals?
• What can be learned from them?
• What is the role of the IMF and the WB?
China is without doubt currently the most dynamic force in Asia; it may be the most
dynamic force in the world. Moreover, if China continues along its present trajectory, its
growth will inevitably change the face of Asia. How did China do this? Where is China
heading? What is happening in China? How did China do this?
• What are the problems facing Zhu in 1993? What were his options?
• What is the impact of China's growth on other Asian countries?
• What are the critical next steps for China in terms of its currency? What are
their problems?
Some say we need to talk about “Chindia” as the new dynamic growth economy. India
alone has shown growth of over 9 percent and is one of the fastest growing nations in
Asia.
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• What are India’s economic strengths and challenges? How did India achieve its
growth? Where is India heading with regards to China?
• What is the impact of India's growth on other Asian countries?
Unemployment in France
Whereas unemployment in France was very low before 1975, it has been extremely high
since 1985. The government's response to this high level of unemployment is widely
regarded as the principle issue. Why is double-digit unemployment of such great concern
in France?
The Japan of the 1980's differs dramatically from the "developmental state" it was earlier.
The new Japan is a rich country with unprecedented current account surpluses, and a very
high level of GDP per capita. However, GDP growth rates have declined and some
observers feel that the economic strategy used by Japan is no longer appropriate.