Superior Essay Writers | Business Economics

A. Recently, the president of European Central Bank (ECB), Mr Mario Draghi, announced that he is thinking of applying Quantitative Easing (QE) within the Eurozone. Assume that you are a member of the ECB board of governors.
1) In your view, what could be the reasons behind this decision? (30 marks)
2) What are the potential advantages and disadvantages of QE? Discuss critically. (30 marks)

B. Assume that the Minister of Finance is responsible for fiscal policy and the Central Banker is responsible for monetary policy. These two policy makers have two options: (i) to agree in the mixture of policies (i.e. both follow a contractionary or an expansionary policy) OR (ii) to disagree in the mixture of policies (i.e. one follows contractionary policy and the other follows expansionary policy). The choices are concisely described in the following table (with the numbers within the matrix showing the payoffs to each policy maker):
Minister of Finance
Contractionary Policy Expansionary
Policy 3, 2 0, 0
Expansionary Policy 0,0 2, 3

Central Banker

1) What is/ are the Nash equilibria? Explain your answers. (20 marks)
2) If we assume that the case of disagreement is detrimental for the economy, analyse the best choices for the two policy-makers. (20 marks)

Sample Solution


“Looking for a Similar Assignment? Get Expert Help at an Amazing Discount!”

Superior Essay Writers | Business Economics was first posted on August 26, 2019 at 3:31 am.
©2019 “Graduate Paper Help”. Use of this feed is for personal non-commercial use only. If you are not reading this article in your feed reader, then the site is guilty of copyright infringement. Please contact me at

Get help with your classes. We provide step-by-step answers to all writing assignments including: essay (any type), research paper, argumentative essay, book/movie review, case study, coursework, presentation, term paper, research proposal, speech, capstone project, annotated bibliography, among others. We are a dedicated essay writing service that can help you put together a top-quality essay.

Professional university paper writers. We Will Help You Write Your Essays
From initial topic to finished paper. We guarantee that your custom essay will not only be delivered on time but will also be of the highest quality.

Get Unstuck! Order Original Answers for all your Assignments

Get Help With Essay Writing

  • Any citation style
  • Any topic

  • 100% Original essays
  • Free revision