Econ 305Writing assignment 1Summary Of ArticleThe article I’ve chosen to use for this writing assignment is in the current issue of The Economist and called “Open the taps, loosen the vice”. This article is looking at how Britain is proposing to deal with its declining economy and deficits. The article covers how the government could end up buying up government bonds which the article states are viewed as pretty stable. Another idea that is being considered is to throw more investment into building schools and roads, etc. it also covers how possibly adding a state run bank that would loan to smaller businesses would help since smaller companies are distrustful of the big banks. They fear that if they run into trouble the bigger banks will pull funding without giving a chance.Application Of ModelI’m choosing to use the Classical Model: Closed Economy for this article because the article doesn’t cover or even worry about anything outside of the domestic market. When we go
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