Faculty of Business and Law
Assignment Brief Mode C and Q
Regulations
Assessment Information
This assignment
is an individual assignment.
With reference
to appropriate theory AND empirical
evidence, write a 1,750-word Essay on ONE
of the following topics:
1
Critically assess the strengths and weaknesses of Purchasing Power
Parity as a theory of exchange- rate determination.
2
In September 2022, the Bank of England’s Monetary Policy Committee
raised the interest rate to
2.25% with the aim of
reducing inflation, the highest level since 2008. Critically evaluate its
implication for output and the foreign exchange (FX) market, and how UK’s
exchange-rate regime influences the effectiveness of this policy.
3
With reference to appropriate theory and empirical evidence,
critically discuss the importance of fiscal dominance in explaining why
exchange-rate crises occur.
4
Critically evaluate the economic costs and benefits of euro area
membership in the context of Optimum Currency Area theory and Maastricht
convergence criteria.
Criteria for Assessment
•
Essay structure (effective
introduction and conclusion, use of paragraphs, logical organization).
•
Use of economic theory and
empirical evidence (clear and accurate analysis, appropriate use of data,
accurate interpretation of empirical evidence, good explanation of diagrams and
underlying theories, demonstrates clear understanding of key issues).
•
Critical evaluation (thoughtful
evaluation of arguments and evidence, explains key assumptions and limitations,
demonstrates wider knowledge and understanding of relevant literature).
•
Presentation and referencing
(clear and professional presentation, correct spelling and grammar, follows CU
APA referencing guide).
This assignment
is designed to assess learning outcomes:
Analyse the
determination of exchange rates in both the short and long run using
appropriate theory and empirical evidence.
Examine in
detail the macroeconomic implications of alternative exchange-rate regimes and
international capital mobility.
Word Count
The word count
is 1750
There will be a penalty of a deduction of
10% of the mark (after internal moderation) for work exceeding the word limit
by 10% or more.
The word limit
includes quotations and citations, but excludes the references list.