Questions 1-12 of Chapter 10
Answer the following questions based on the article "Decades Lost and
Found: Mexico and Chile Since 1980" (Bergoeing, Kehoe, Kehoe, Soto)
1. The study analyzes four possible explanations for the dierence betwee
ECON 4311: The Economy of Latin America
Why study the Economy of Latin America?
- Because I need the credits!
- Because all the other classes were full.
- Because I have lived in /travelled to a Latin American
country, and I liked i
2.Describe the process that led many countries in Latin America to adopt ISI
development policy in the 1950s.
Before Latin America adopted ISI policy, Latin American countries developed their
economy by export
5. Labor market distortions in Latin America:
a). Job security regulations: Latin America has the most comprehensive set of job security
provisions in the world. For example, an employer must notify a third p
2). Relative to other developing countries, the economy of Latin America has been growing more slowly, however Latin
America is still important compared to the world economy in terms of its GDP. Latin America makes up
GDP is the output of all final goods and services produced in an economy during a year.
The economic output of the world is approximately $76 trillion and Latin America output
is around $6 trillion or over 8% o
Worked with Laura Cattaneo and Tuba Dar
Part 1 Attached sheet
An increase in oil prices over a short period is defined as an oil shock. When
there is an increase in oil prices, an oil exporting country wishes t
April 3, 2017
Part 1 (Similar to what we did in class)
Suppose the money demand can be expressed as mt = ( ) y , where
= 0.30 and = 0.80.
a) Calculate the ination rate that maximizes the ination tax. Calculate
the maximum ination tax.