International Economics

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Essay

International Economics

Javier Milei, Crazy or Genius?

Motivation

In December 2023, Javier Milei was elected President of Argentina. The policies he has put forth in the first few months in office and the ones he is planning represent a substantial discontinuity relative to the policies followed by almost all previous Argentinian governments. Because of this, he is often described as an anarcho-capitalist and a right-wing populist in the media. What are Javier Milei’s policies, and what are their likely consequences on the Argentinian economy? Is Milei genius or crazy?

Questions & Instructions

There are two parts to this assessment.

1.    In less than 600 words, discuss the impact of any two of Milei’s policies that should

have meaningful macroeconomic consequences. First, be sure to clearly mention the two polices. Second, apply the theories covered in the first part of the module to discuss the consequences of the policies on Argentinian macroeconomic indicators like output, inflation, and the exchange rate.

2.    Keeping in view the theories covered in International Trade (second part of the

Module) discuss the impact of any two of Milei’s policies. In less than 600 words, start by clearly mentioning the two policies you are considering and follow it with a detailed discussion of the impact it will have on Argentinian international trade (referring to the predictions from theoretical models covered in the module). Finally,  conclude with a discussion of how various trade policy instruments could be used to Argentina’s advantage.

Forecasting and analysing the impact of economic policies is difficult, as they might have a myriad of impacts that are hard to predict. Therefore, we expect a sensible discussion connecting theory and evidence.

In answering these questions, it is important that you consider the Argentinian context before Milei assumed office. It is also important that you use any evidence that helps your case. For example, what is the evidence from other countries that implemented similar policies?

Deadline

A typed copy of your answers should be uploaded through the assignment section on Canvas by 5.00pm on Friday, May 10th.

Guidance on readings

Part of your assessment relies on a proper identification of Javier Milei’s policies. For this, use of credible sources is paramount. Use sources like the Financial Times, the Economist, the Guardian, other credible newspapers, academic papers, and any other relevant resources.

Assessment Criteria are as follows:

Content

•    Appropriate use of concepts.

• Proper identification of economic policies for each part of the essay.

• Proper application of the theories covered in each part of the module, showing awareness of their limitations if appropriate.

•     Identification of relevant aspects and factors.

•    Logical presentation of viewpoints.

•    Effective assessment of arguments.

•    Appropriate research and usage of the academic literature, newspapers, and evidence.

Presentation

•    Clarity of expression. It is critical that you write in a clear and appropriate way.

•    Properly citing of references.

•     Use font size 12 and Times New Roman font style.

Academic Integrity

•     Use your own words.

•    Use of AI tools (like submitting AI-generated text as one’s own) violates the school’s academic integrity policy.

•    Beware of plagiarism.

•    Note that, in addition to the written component of this assignment, you may be

asked to participate in an oral assessment or present your essay. This is to ensure a comprehensive understanding of the subject matter and to verify the authenticity of your work. Be prepared to discuss your research process, findings, and conclusions in depth.

Each part of the essay carries equal weight (25% each). This assignment is worth 50% of your final mark.