Please read two questions carefully and answer both questions as
best you can. Where appropriate, you must show example/explain to
receive the full mark.
The two questions are equally weighted.
When you finish, please make sure to reread your work and make
changes/remove irrelevant information that you think will make your
answers better before the final submission.
Submit your work as a word document through Turnitin on Monday,
18 May 2020, by midday.
Try not to write more than 1000-word (although a word count with +/-
25%)—maximum word count beyond which nothing will be marked.
The maximum includes, i.e. a word count with +25% tolerance. I
suggest you write, i.e. each in 500 words or 400 words and 600
words, etc.

Please use a separate sheet for each question. Label each question
that is “Question 1”. You are also required to label each part of the
question, so write “part (a)”, “part (b)”. For example,
Question 1
Part (a)————————————————————————————–
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Part (b)————————————————————————————–
————————————————————————————————
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Separate sheet
Question 2
Part (a)————————————————————————————–
————————————————————————————————
——————————————-
Part (b)————————————————————————————–
————————————————————————————————
——————————————-
Do not write an introduction. You will not get the mark for beautifully
written openings and irrelevant information. Just leap right into the
question. The bottom line is to stick to the question.
The cover page should contain (with no decoration)
• Module code
• Your name and student number
• Module leader’s name
• Due date

Question 1
Consider the global financial crises (GFC) in 2007 started in the US. The
GFC affected several Eurozone countries such as Greece, Portugal,
Spain, and Ireland. Central banks made a number of significant
interventions in financial markets. (50 marks)
a. Discuss the challenges faced by the ECB in implementing monetary
policy and explain how ECB manage the interbank market. Evaluate
the appropriateness of the ECB’s policy and explain how it impacted
economic conditions. (20 marks)
b. Ireland was doing so well between 1997 and 2007. They called it “The
Celtic Tiger”. What caused the Celtic Tiger phenomenon? Discuss the
key factors and explain what led to the financial crisis in Ireland.
Consider Spain and Greece, which were also hit by the severe crisis
as an extension of GFC. Briefly compare these two countries with
Ireland, i.e. similarities and differences. (30 marks)

Question 2
Coronavirus (covid-19) is declared as a pandemic by the World Health
Organisation (WHO), which means many countries will be affected. The
global spread of the covid-19 threatens the global markets; therefore,
governments and central banks concern the negative impact of the virus
on economies. (50 marks)
a. There are two main economic policy tools used by central banks in
times of crises. Both the ECB and FED used expansionary monetary
policy, in some countries tight fiscal policy and quantitative easing
(QE) in times of GFC. Discuss how the QE programme works.
(15 marks)
b. Consider the Covid-19 and its impact on global markets. Do you think
traditional economic policies (expansionary monetary and fiscal
policies) will be adequate to protect the global markets? If central
banks adopt QE programs, will these programs be effective to protect
the economy since this crisis is exceptional and including substantial
supply and demand shocks? (hint: consider the labour market and
some sector of the economy that is the service sector, etc.). If not,
suggest an alternative to QE. (35 marks)
TOTAL MARK: 100
Sheet 5 of 8
Module Code: ECON3507
POLICY ON ONLINE ASSESSMENT
1. Please provide a word count.
2. Stick to the questions. One of the most critical things to bear in mind
as you write your answer that everything you say it should be directed
to the questions. Wandering off questions, no matter how insightful or
accurate your answer will not provide you with additional marks. Ask
yourself – is what I have written relevant to the question?
3. Online submission. You must submit your word document online
through Turnitin.
4. Copy and Paste. Please try to refrain from doing this. This is an
individual assessment. Do not copy from other students’ work. Do not
copy text from sources such as books or journals or internet without
acknowledgement. DMU has a clear policy for plagiarism and bad
academic practice. I will always appreciate your work.
5. Font size. Please use a font size of approx. TNR 12 or Arial 12 sizes.
Nothing smaller. And use 1.5 spacing.
6. English. Some students’ grasp of grammar and syntax is
understandably weak. I do not deduct marks for poor English. But if I
can’t understand your argument, I can’t reward you with marks.
7. References or Bibliographies. Ensure you reference your citations
using the Harvard method. Do not use footnotes or endnotes. You
can use the link to reference your work correctly.
http://www.library.dmu.ac.uk/Images/Selfstudy/Harvard.pdf
8. Do not reference sources that you haven’t read.

In general, as future economists/consultants/financial
planners/policymakers/banking professionals, what I would like to
see in your discussion is
Understanding the nature of central banks, their actions and impact in
globalised economies.
Understanding and evaluating the different monetary policy
implementation measures and impact in financial markets and the
economy.
Understanding and evaluating the importance of particular economic
theory/theories and how they can be applied to find solutions to real-world
problems in the financial system and the economy.