ESSAY TOPICS
The folowing is a selection of exam topics used in previous exams. Other possible topics can be found in this list.
1. Large wage and income differentials are necessary for economic growth.
2. Germany should introduce a minimum wage.
3. German restrictions on labour migration from the new East European members of the EU are justified.
4. The main cause of the euro zone's problems is not its one-size-fits-all monetary policy, but the fact that its biggest economies are burdened with a number of structural flaws, in particular rigid labor markets.
5. Some economists (most notably Alban W. Phillips and Paul A. Samuelson) have noted an explicit link between inflation and unemployment—when inflation was high, unemployment was low, and vice-versa. Shouldn't the ECB have a higher inflation target in order to boost the growth of the euro-zone economies suffering from unemployment?
6. Profit comes at the expense of wages.
7. The European Central Bank should shift focus from inflation control to limiting economic growth.
8. Consumer spending is the most important motor for economic growth.
9. More inflation of the euro would benefit the European economy.
10. It is inevitable that either China or the US will crash, bringing down the other—and the world economy, too.
11. Henry Ford said, “if you do not pay high enough wages to your workers, they can't afford to buy your product.” Would increased wages significantly boost the growth of the German economy?
12. What economic policy would enable the EU to survive as an economic power in face of US (present) and Chinese (future) competition?
13. Governments need to do everything possible to protect their citizens from negative aspects resulting from the highs and lows of the economic cycle.
14. The process of globilization creates a "race to the bottom" which is harmful to the economic and social welfare of many, especially poor workers in the developing countries.
15. Completely liberalized international financial markets would handle all shocks optimally, if only governments and international institutions such as the IMF would stay out of the way.
16. The current high levels of compensation for leading company executives is justified.
17. The Anglo-American model of corporate governance, with its emphasis on "shareholder value" is preferable to the model found in continental Europe.
18. A wide disparity of wealth and income is both desirable and necessary in a free market economy.
19. In the future an increase in the productivity in the services industry will eventually result in a situation of permanent chronic unemployment among most of the working population.
20. Poland (or another eastern European nation) will be unable tosuccessfully restructure its economy and participate in the global and European economy.
21. For the next several years Germany will have great difficulty in making a successful transition to an economy which is more dependent on the services sector.
22. Free trade agreements will, on balance, eventually result in the improvement of living standards for people in the developing world.
23. Free trade agreements are made to serve the interests of international corporations, and not the ordinary workers of the nations involved
24. Free trade agreements will result in mixed results for different groups of people and different interest groups.
25 Germany should change its tax system to a system of flat taxes.
26. In an article by Noam Chomsky (in Le Monde Diplomatique, January 1999) the'Tobin tax' is described as
"a small tax on short-term speculation was proposed in the early 1970s by James Tobin, Nobel prize-winner for economics. It was conceived as a way of introducing 'grains of sand' into the cogs of the speculative process and encouraging long-term productive investment."
Some have argued that this would discourage speculative financial flows of the sort that can damage wobbly economies.
TOPIC: A 'Tobin tax' would be a good tool for improving the economic situation in less-developed nations.
27. The European Union demonstrates that the process of globalization is indeed taking place at a much slower pace than many think.
28. The German economy would be better off if it returned to its own national currency and central bank.
29. What should the primary aims of the European Central Bank be, and how can it achieve these goals.
30. A capitalistic "free market" economy is driven by such things as envy, ambition and greed. This leads inevitably to recurrent financial and economic crises.
31. Economic bubbles often burst, causing a recession. When this happens governments and/or central banks need to take radical action to prevent or at least soften the recession.
32. Government control over wages and income plays a positive role in the economy.
33. What would most encourage economic growth through innovation in Germany?
34. Government has a responsibility to try to rescue large and important companies if they are in danger of going bankrupt.
35. Labour unions play an important and positive role in the German model of corporate governance.
36. The German automobile industry will not in the long-term be able to survive the pressures of world competition.
37. Some trade restrictions are necessary in order to protect low-skilled workers in Europe (and/or China).
38. Government in Europe needs to protect farmers from the volatility of markets.
39. The German government needs to support its automobile industry.
40. Massive government spending is the best solution to the current economic crisis.
41. Government should place restrictions on the salaries of executives.
42. Companies should be more concerned with their "corporate social responsibility", than with their profits.
43. Market solutions to environmental problems should be considered.
44. Should developing economies be given to help developing economies?
45. Should the US Federal Reserve Bank continue quantitative easing?
46. Should the US government continue spending stimulus as long as the economy is weak?
47. Should indebted countries
engage in fiscal austerity?