Examples of economic analysis - the Generation ?uro Students' Award

What you have to do…
7 th , now you have to explain your decision in an Essay of up to 2,000 words (roughly two-three A4
pages). You have to be concise and convincing. Thus remember that you have to:
– Explain also the pros and cons of your decisions,
– Lay out the various risks you see (both bad risks and positive risks), and,
– looking ahead, also present some possible scenarios
8 th , remember that your goal is to explain principally what has changed since your last Introductory
Statement/Essay.
It is about interpreting new information and whether it changes your broad picture and the various
risks to price stability and scenarios. Economists call this a “repeated game”
– In fact, you meet with your peers to discuss interest rates at least once a month (also there are
teleconferences and other Governing Council meetings).
– There is an underlying consensus that builds up over time and new evidence confirms it or
requires some adaptations.
– Thus your focus should be the new data/information or developments that have occurred over
recent weeks and that require changes in your baseline scenario.
9 th , unless there is a systemic crisis – like the ongoing financial crisis - which is a game changer…
– Then you need to assess the severity of the events unfolding
– Most backward data and information that you have collected loose partly in significance