Pick one of the following: Explain two effects
of an open economy on monetary and fiscal policy. or Evaluate the role banks
play in world financial markets. Describe two problems with banks as
international lenders associated with international debt. Do this in 100-200 words
Then do the following separate paper
2. Carbaugh Asks, "Can the United States
Continue to Run Current Account Deficits Indefinitely?" Since in the long
term, the obvious answer is no, perhaps the question should be rephrased to ask
•Does the United States' unique position in
the world economy allow the country to safely run persistent external deficits?
•Can persistent U.S. deficits in the
current and payments accounts be adjusted without bringing about economic
recession or crisis?
In a 4 essay, summarize and critically
evaluate the main positions provided on this in Carbaugh's (in week6reading
PDF) and the Deutsche Bank Research piece (See attached files).