Econometrics 1

Only uses the material I attach below no other outside source.
5-6 pages double-spaced text not counting citations graphs and tables. You can draw graph if you want. Grammar and spelling are counts. When you use something from the material I provide below cite it as an Economics paper.
I do not expect you to use or cite any material beyond the readings I attach below. When you use something from the class notes you need not provide any kind of citation. When you use a reading from the course pack or something you find for yourself you must cite it properly.
The essay question is below:
II) Back in 2008 two Federal Reserve economists published anarticle (in your course pack) titled What is the Optimal Inflation Rate? In it they discussed what level the Fed should choose for an inflation target. They said that a standard model suggested a target inflation rate of 0.7-1.4% (in the PCE index) would be good and that a target of 2% would also be good; 2% would place only limited constraints on monetary policy in stabilizing the economy. In fact back in 2008 nearly all economists believed 2% was a good inflation target.
Nowadays in 2017 many economists argue that the Fed’s inflation target should be higher than 2%. For example Olivier Blanchard formerly the chief economist at the International Monetary Fund recommends an inflation target of 4%.
Why are economists recommending an inflation target of 4% now if they recommended an inflation target of2% back in 2008? Did something or some things happen in the meantime that changed economists’ minds? In your paper make sure to cover all of the reasons economists give for adopting a higher inflation target.
Writing rule:
The introductory paragraph must state your conclusions e.g. your answers to the specific
questions I posed with respect to the topic you chose. The concluding paragraph should
restate your conclusions but not in exactly the same words.
Avoid fancy big odd words
Always ask: is there a shorter word that means the same thing?
As much as possible avoid using words you don’t use in ordinary conversation.
Know the difference between its and it’s between who’s and whose between
effect and affect.
Look up the difference between compare with and compare to. If you mess this up I
will HATE YOU.
Relate to correlate with. NOT relate with correlate to.
Reason for NOT reason of.
Research on or research about. NOT research of.
There is no such word as researches.
Avoid the passive voice.
NO I was bitten by the dog.
YES The dog bit me.
NO Models have been designed
YES Economists have designed models
Avoid unnecessary adjectives and adverbs.
NO little universal consensus has been achieved
YES little consensus has been achieved
oh wait…that’s passive. Better:
economists have not come to a consensus
NO it is very likely
YES it is likely
NO of utmost interest
YES of interest
oh wait…even better:
interesting
When you quote you must give page number as well as author and year:
Dogs bite (Aaron 1996 12)