one recommendation of MACRO Paper
By dint of your most excellent work in his class, you have been requested to go to Washington DC on December 31, 2014, to advise the President, the Treasury Secretary, the incoming Congress, the Federal Reserve Chairman and Board of Governors and the US Chamber of Commerce on what to do to improve the US economic condition: strengthening the foreign exchange value of the $US Dollar.
The primary objective is to do this while encouraging stronger long-term growth of the US and world economies.
Incredibly, all USA players have agreed, ex ante, to abide by your recommendations, as have the leaders and finance ministers of the G-22, the IMF, the World Bank, all member nations of the UN, WTO protesters, Basque Separatists, Led Zeppelin Reunion (we hope), and the Arab Spring/Fall/Winter rebels.
They ask that in your in the first paragraph you briefly describe what IS the CURRENT (Fall 2014) condition, in your collective view. Then briefly describe the variables you would use to measure the objective. Then outline your proposed policy, and why you think they would accomplish this objective.
Remember they are interested in macroeconomic policy dealing with stabilization and fostering strong, sustainable long-run growth. What major fiscal and monetary policies do you recommend, and why? What do you recommend for government regulatory policies for finance and for energy/environment? Do you recommend any supply-side policies? Do you lean more towards a Keynesian or a Classical approach? Describe how your proposed policies would be implemented and their consequences.
Recommend policies that are realistic. What are the potential downsides to your recommendations, and who (what groups) would support and who would oppose your recommendations and why. Who (internal domestic as well as international) would win or lose after your policy are put into effect? How would the stock and bond markets react to your proposals?