Macro & Micro economics
Please answer one of the following two questions.
Type your answers, using a twelve point font with double spacing and one inch margins.
1). Locate the human development indicators that are part of the most recent Human Development Report(www.hdr.undp.org). Look up indicators for three countries: one country from high(or very high) human development, one from medium human development, and one from low human development. Explore and describe the similarities and differences in development among these three countries, paying close attention to how trends in the Human Development Index, as well as subcategories for particular indicators within the index, have evolved over time and for the most recently available information. Depict the role international trade flows and capital flows play in differentiating the pace and level of development across the three countries as well
2) Emerging currency unions can suffer from many market distortions. Economic reformers in participating countries have learned the hard way that the order in which trade adjustment measure are taken really does matter. Trying to make adjustments in policy that achieve sustainable results requires systematic changes. Consider the following policy components:
a. Privatize state owned enterprise.
b. Choose the right level of capital controls.
c. Reform the financial sector.
d. Impose wage and price controls.
e. Eliminate import quotas an export tariffs.
f. Reduce government expenditures.
g. Integrate the capital and financial accounts.
Propose and defend a sequence for the elements(a.) through (f.) that that help to attain sustainability but avoid mistakes of the past in forming currency unions.
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