Uture Policy Adoption Strategies: from the State of the Macro Economy Given Impact on Changes to the UK Housing Markets Over the Last Five Years
Write a report for the British Government and the Bank of England setting out the impact of changes in the housing market on the state of the macroeconomy and suggesting appropriate policy measures to take in the light of changes in the housing market in the UK over the last five years.
The report should cover the following issues:
A description of the way in which changes in the housing market have macroeconomic effects.
An account of how strong these effects are in the UK economic context.
An analysis of whether the macroeconomic policy response to changes in the housing market over the last five years has been correct or not.
A discussion of the right policies to adopt over the next two years in light of the current changes in the market.
Analysis should focus on the macro economic situation of the UK but you may look at the experience of other countries to make comparisons and draw general conclusions.
Be able to interpret and analyse published macroeconomic statistics.
Understanding of relevant macroeconomic theory.
Awareness of the macroeconomic situation currently facing the UK.
Realism and appropriateness of policy recommendations.
Clarity and structure of the report, including appropriate academic referencing and provision of a clear conclusion, linked to the preceding argument.
Note this report is not looking at the causation of change rather the effects these outcomes have had on macroeconomics variables (i.e. consumption, etc…) across the macroeconomy.
Please see attached essay ideas I have expressed my position in the round and have not narrowed my opinion to specifics i.e. I have defined variables etc but have used phrase such as spending, indebtedness, consumer confidence, unsustainable etc. in the document more specfic termonnolgoy should be used. It is not designed as a dialog and can be read as bullet points if you wish. The running order is roughly in sequence i.e. it establishes the scene and then goes on to answer. In particular please take note of the final secton (policy) as some of the policies listed should be anaylsised/mentioned in the document along with other possiblities.
Harvard System of Referencing.
The following Articles and Books should be included and citied,
J Muellbauer and A Murphy. Housing Markets and the Economy: The Assessment (Oxford Review of Economic Policy Spring 2008)
A Benito et al. House Prices and Consumer Spending (Bank of England Quarterly Bulletin Summer 2006)
A Benito and R Wood. How Important is Housing Market Activity for Durables Spending? (Bank of England Quarterly Bulletin Summer 2005)
A Benito and J Power. Housing Equity and Consumption: Insights from the Survey of English Housing (Bank of England Quarterly Bulletin Autumn 2004)
W Carlin and D Soskice (2006) Macroeconomics: Imperfections, Institutions and Policies OUP
C Goodhart and B Hoffman. (2007) House Prices and the Marcoeconomy: Implications for Banking and Price Stability OUP
IMF (International Monetary Fund) World Economic Outlook: April 2008. Housing and the Business Cycle chapter 3