You are encouraged to read outside of academic papers and draw from sources such as blog posts and newspaper articles.

Use google scholar to find the papers.

Some of the suggested readings contain advanced empirical and theoretical sections. It is likely that as you research the topics yourself you will find even more technical papers with large sections discussing estimation and modelling techniques. should be able to display an intuitive understanding of what was done and be able to interpret the results.

1. The Economic Impact of Covid-19

The word count is 1500 words and must be no more than it, it has to be between 1350-1500 words , further, there must be at least 10 additional references with links and access date using hover referencing on top of the links I have provided here.

Background: The current public health crisis of Covid-19 has had a unique and unprecedented impact on people’s lives around the globe. As part of this crisis, major economies have experienced a sharp contraction in GDP and recently a significant inflation pressure.


Pick US and collect data on interest rates, output, inflation, government spending, and unemployment etc. over the last 5 to 10 years. Also talk about the natural level of each of them, such as unemployment, interest rates, inflation, output, government spending.

  1. Show the economic impact of the restrictions due to Covid 19 using graphs from your data. Summarise your findings (20%).
  2. Analyse the dynamics observed in the data and discuss whether it is consistent with predictions of the Phillips curve-augmented IS-LM model taught in week 3 and 4 of this course (40%). For this part, please make sure to analysis each part of the symbols in the Phillips curve such beta, the output gap, the exogenous shock z, the expected inflation and anything that relates here, Make sure to talk about the IS and LM model and then also draw out diagrams and see how each moves and how it affects the curves. For example When analyze, say, the effect of pandemic on inflation using the Philips curve, you should determine which factors are the most important. beta is the sensitivity of inflation to output gap. is it an important factor that drives the inflation rate during the pandemic. If yes, how does beta change and why? if you want to analyze the natural level of production, you have to take a stance on how to measure it. even though you may not be able to accurately quantitative measure of the natural output level, to have a theoretical or qualitative discussion might also help.
  3. Discuss whether this economic crisis represents a temporary contraction and economic activity will return to pre-crisis levels quickly once restrictions are removed or whether there are factors that might change economic activity more permanently (40%). For this last part, please refer back to the first part where the you have talked about eg the unemployment and then the natural rate of unemployment etc.

Please address all the parts, also please do construct as many diagrams as possible and also neat. Please allocate the distribution of words as given by the percentage one each section. Thanks a lot! There are sample essays which are attached for your references to say how they are constructed etc.

Suggested introductory readings:

Chapters 8-11 of nil Gottfries macroeconomics

Galí, J. (1992). How Well Does the IS-LM Model Fit Postwar U.S. Data? The Quarterly Journal of Economics, 107(2), 709-73.

Krugman, P. (2018). Good enough for government work? Macroeconomics since the crisis. OxfordReview of Economic Policy, 34 (1-2), 156–168.

Simon Wren Lewis blog post: andafter.html, among others.

Collection of LSE blogs:

The business costs of supply chain disruption:…


A good place to start searching for data is the St. Louis Fed’s Federal Reserve Economic Data (FRED) site This is a surprisingly easy-to-use, free site for exploring hundreds of thousands of economic data series. Another good source is the OECD database at

There are some websites that contain a huge amount of data on Covid-19 including government policy response: and projects/coronavirus-government-response-tracker

Word limit to be made within 1350 to 1500 words and there is no any x % over, it cannot go over than 1500 words and no less than 1350 words.

The word limit does not include references but does include footnotes and appendices.

You will be rewarded for displaying a broader knowledge and critical appreciation of the literature.

There are certain things which a good essay should display. At a minimum: it should clearly identify and explain the key concepts required to answer the question; it should display a detailed understanding of the topic, including the literature (both the suggested readings and other relevant literature); it should address the question(s) using an appropriate economic analysis; and it should be structured in a way which presents a clear, logical progression to the answer and clearly states its conclusions.

Some Tips

  1. Be open-minded about which question you would like to answer. Think about each in turn, do some of the introductory reading, then write a brief plan for each. You will probably find that you have more ideas, or become more interested in, one of the two questions (and it is not always the one you expected).
  2. It usually helps to get something down on paper well before the deadline. This allows you to critically assess which parts of your essay are strong and which might need more work, and focusses your reading on the issues which you have not yet fully addressed. Redrafting is likely to make your essay more polished.
  3. Use the introduction constructively. Give the reader a clear indication of how you are approaching the question, and what your main arguments and conclusions will be.
  4. The emphasis of the essay should be on economic analysis and displaying an understanding of the literature which goes beyond merely reproducing or summarising it. The essay should be written for a reader familiar with economic terminology.
  5. Avoid excessive quotations. Some essay submissions rely very heavily on quotations from other papers. The author of that paper was probably not addressing the specific question which you have been asked, so it is likely that by interpreting and rewording what they have said (with reference to them) you can provide a stronger, clearer argument. Also, lot of quotations break up the flow of your writing and provide you with less freedom to say what you want to say.
  6. Read beyond the suggested readings, but be careful what you read. While blogs and websites can be useful and stimulate ideas, peer reviewed journals have been very heavily scrutinised prior to publication and so often provide a more reliable basis for your arguments. If something you have read online has given you an idea for your essay, look up the original academic source.
  7. Once you’ve finished writing, reread only the first lines of each paragraph in your essay. Can you still follow it? Consider splitting the paragraphs where you lose the line of thought into two.