It's one thing to know how parts of an economy work, but it's another thing to put together all of the pieces and understand how the overall economy operates. The intent is to apply the principles learned in the course to the analysis of a particular economy. The main purpose is to better understand the European Sovereign Debt Crisis.

Italy - Long-Run Economic Growth and the Output Gap

Consider the behavior of potential GDP. Is there any evidence that its underlying growth rate has changed in recent years? Does any of the data collected for the project help to explain this change? What has happened to its output gap? What are the implications of the current output gap for the economy?

Italy - Covid-19 section

Discuss briefly the early impacts of the Covid-19 crisis and the potential long-run economic effects.

Italy - Budget Deficits and the National Debt

What was its budget deficit and national debt as a percent of GDP prior to the financial crisis and how has it changed since (due to economic weakness as well as any stimulus)? Does this seem to pose a problem?

Italy - Interest Rates

What has happened to the interest rate on ten-year government bonds during the global financial crisis and sovereign debt crisis? What does this indicate about the risk premium, strength of the economy, and/or expectations of inflation?