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程序代写案例-ECOS3010-Assignment 1

时间：2021-04-22

ECOS3010: Assignment 1 (Total: 50 marks) Due 11:59 pm, Friday April 23,

2021

1. Homework must be turned in on the day it is due. Work not submitted on or before

the due date is subject to a penalty of 5% per calendar day late. If work is submitted more

than 10 days after the due date, or is submitted after the return date, the mark will be

zero. Each assignment is worth 10% of total weight.

2. TYPE your work (including all mathematical equations). Homework is

submitted as a typed .pdf le, no exceptions. Untyped work will not be marked and will

receive a mark of zero. You can draw a graph by hand, scan it, and include it as a gure in

the PDF. Please dont forget to include your name and student number.

3. Carefully explain your work.

Question 1-5. Answer True, False or Uncertain. Briey explain your answer. (each

question 4 marks)

1. A permanent increase in money supply cannot a¤ect any variable in the OLG model

of money.

2. In the OLG model of money, at money does not pay interest, so moneys rate of

return is 1.

3. Suppose that the government nances its expenditure through seigniorage revenue.

There exists an upper limit on the amount of the seigniorage revenue that can be generated.

4. The original Phillips curve nds that there is a negative correlation between ination

and output growth.

5. The Lucas critique indicates that the government can use a random monetary policy

to stimulate output.

6. (10 marks) Read the article on Digital Currencies, Stablecoins, and the Evolving

Payments Landscapeby Lael Brainard.

https://www.federalreserve.gov/newsevents/speech/brainard20191016a.htm.

Discuss similarities and di¤erences among a rst-generation cryptocurrency such as the

bitcoin, a stablecoin such as Facebook Libra and a central bank digital currency. You can

use additional references that you nd and please list your references. Word limit: 500

words.

7. (10 marks) Understanding ination and real money demand in Australia. Economists

propose one way to measure real money demand by M=PY , where M and PY are money

supply and output in nominal terms. The ratio M=PY measures money demandin the

sense that it gives the desired real money balances M=P after adjusting for the level of

output Y . In this question, we explore how money demand by this de nition depends

on the ination rate using Australian data from 1975 to 2018. Please submit your data

(keeping three decimal places) as an appendix to your assignment.

(a) Use data from Australian Bureau of Statistics to nd nominal output PY and the

ination rate. In particular, you can use data series 5206.0 (Table 3, Column CG) to nd

quarterly Gross Domestic Product (PY ) and data series 6401.0 (Tables 1 and 2, Column

AB) to nd quarterly ination measured by percentage change of CPI.

(b) From the Statistics Tables of the Reserve Bank of Australia, nd money supply M

measured by M1 in Table D3, Column K. Please convert the monthly data into quarterly

1

data by keeping the values of money supply for March, June, September and December in

each year.

(c) Calculate real money demandM=PY and plot it against ination. (Note that output

is measured in millions $ and money supply is measured in billions $. It might be useful

to convert them into the same units.) Please use ination as the x-axis and real money

demand as the y-axis in your scatter plot. If you t a linear trendline in your plot, what is

the relationship between real money demand and ination?

(d) How can we use the theory we developed in class to rationalize the observed rela-

tionship between real money demand and ination?

8. (10 marks) The original Phillips curve shows the correlation between ination and

unemployment. Since unemployment and output growth are usually negatively correlated,

economists also examine the correlation between ination and output growth.

(a) Using the database developed by the World Bank (World Development Indicators:

http://databank.worldbank.org/data/reports.aspx?source=world-development-indicators).

Find annual data on the ination rate (consumer prices annual %) and the GDP growth

(annual %) for Australia and the US from 1961 to 2016. Plot the correlation between

ination and GDP growth in each country. Please use GDP growth as the x-axis and

ination as the y-axis in your plots. Add a trendline in each of your plot.

(b) Using the same database, nd as many countries as possible for 1965 and

for 2015. Plot the correlation between ination and GDP growth in each year (1965 and

2015). Again please use GDP growth as the x-axis and ination as the y-axis in your plots.

Add a trendline in each of your plot. (Hint: you may nd one or two countries might have

extreme values of ination. You may consider taking out these outliers when you plot the

correlation.)

(c) The original Phillips curve identi es a negative correlation between ination and

unemployment. In your plots above, have you found contradicting evidence? Please briey

discuss how to rationalize the nding from the original Phillips curve and the contradicting

evidence using the theory we develop in class.

2

学霸联盟

2021

1. Homework must be turned in on the day it is due. Work not submitted on or before

the due date is subject to a penalty of 5% per calendar day late. If work is submitted more

than 10 days after the due date, or is submitted after the return date, the mark will be

zero. Each assignment is worth 10% of total weight.

2. TYPE your work (including all mathematical equations). Homework is

submitted as a typed .pdf le, no exceptions. Untyped work will not be marked and will

receive a mark of zero. You can draw a graph by hand, scan it, and include it as a gure in

the PDF. Please dont forget to include your name and student number.

3. Carefully explain your work.

Question 1-5. Answer True, False or Uncertain. Briey explain your answer. (each

question 4 marks)

1. A permanent increase in money supply cannot a¤ect any variable in the OLG model

of money.

2. In the OLG model of money, at money does not pay interest, so moneys rate of

return is 1.

3. Suppose that the government nances its expenditure through seigniorage revenue.

There exists an upper limit on the amount of the seigniorage revenue that can be generated.

4. The original Phillips curve nds that there is a negative correlation between ination

and output growth.

5. The Lucas critique indicates that the government can use a random monetary policy

to stimulate output.

6. (10 marks) Read the article on Digital Currencies, Stablecoins, and the Evolving

Payments Landscapeby Lael Brainard.

https://www.federalreserve.gov/newsevents/speech/brainard20191016a.htm.

Discuss similarities and di¤erences among a rst-generation cryptocurrency such as the

bitcoin, a stablecoin such as Facebook Libra and a central bank digital currency. You can

use additional references that you nd and please list your references. Word limit: 500

words.

7. (10 marks) Understanding ination and real money demand in Australia. Economists

propose one way to measure real money demand by M=PY , where M and PY are money

supply and output in nominal terms. The ratio M=PY measures money demandin the

sense that it gives the desired real money balances M=P after adjusting for the level of

output Y . In this question, we explore how money demand by this de nition depends

on the ination rate using Australian data from 1975 to 2018. Please submit your data

(keeping three decimal places) as an appendix to your assignment.

(a) Use data from Australian Bureau of Statistics to nd nominal output PY and the

ination rate. In particular, you can use data series 5206.0 (Table 3, Column CG) to nd

quarterly Gross Domestic Product (PY ) and data series 6401.0 (Tables 1 and 2, Column

AB) to nd quarterly ination measured by percentage change of CPI.

(b) From the Statistics Tables of the Reserve Bank of Australia, nd money supply M

measured by M1 in Table D3, Column K. Please convert the monthly data into quarterly

1

data by keeping the values of money supply for March, June, September and December in

each year.

(c) Calculate real money demandM=PY and plot it against ination. (Note that output

is measured in millions $ and money supply is measured in billions $. It might be useful

to convert them into the same units.) Please use ination as the x-axis and real money

demand as the y-axis in your scatter plot. If you t a linear trendline in your plot, what is

the relationship between real money demand and ination?

(d) How can we use the theory we developed in class to rationalize the observed rela-

tionship between real money demand and ination?

8. (10 marks) The original Phillips curve shows the correlation between ination and

unemployment. Since unemployment and output growth are usually negatively correlated,

economists also examine the correlation between ination and output growth.

(a) Using the database developed by the World Bank (World Development Indicators:

http://databank.worldbank.org/data/reports.aspx?source=world-development-indicators).

Find annual data on the ination rate (consumer prices annual %) and the GDP growth

(annual %) for Australia and the US from 1961 to 2016. Plot the correlation between

ination and GDP growth in each country. Please use GDP growth as the x-axis and

ination as the y-axis in your plots. Add a trendline in each of your plot.

(b) Using the same database, nd as many countries as possible for 1965 and

for 2015. Plot the correlation between ination and GDP growth in each year (1965 and

2015). Again please use GDP growth as the x-axis and ination as the y-axis in your plots.

Add a trendline in each of your plot. (Hint: you may nd one or two countries might have

extreme values of ination. You may consider taking out these outliers when you plot the

correlation.)

(c) The original Phillips curve identi es a negative correlation between ination and

unemployment. In your plots above, have you found contradicting evidence? Please briey

discuss how to rationalize the nding from the original Phillips curve and the contradicting

evidence using the theory we develop in class.

2

学霸联盟