stabilisation policy in times of economic shocks the great depression of 1929 1933 and the global recession of 2007 2009

1. Describe both phenomena, critically analyze the causes and the effects of the shocks; discuss similarities and differences. (15%)

2. Provide data on GDP growth rate, the unemployment rate dynamics, the inflation rate, changes in budget deficits, and public debts; collect the five years data for each case. (10%)

3. Analyze and assess the effectiveness of stabilization policy instruments (monetary and fiscal), which were used in selected countries during the Great Depression of 1929-1932 and the Global Recession of 2007-2009. Use the appropriate tools to support your answer: IS-LM/AS-AD models. (grade: 30%)

4. If you think that some policy instruments were not effective and failed to support the economy, please design your own macroeconomic policy that, in your opinion, would help the economy to recover. (grade: 30%)

5. Provide explicit and reasonable conclusions. (grade: 15%)

3,000 words