Exam Essay Responses

Compare and Contrast European and American Financial Crises and Perspectives on Crises (1000 words minimum). All quotes must have quotation marks and references.

Essay Question One has two parts:
On pages 410-412 Blinder outlines similarities between the American economic crisis and the European crisis. And on pages 412-415 Blinder describes three key differences. (I’ve attached these)

PART 1: Describe these similarities and differences. In your description of the similarities, explain key relationships between the causes of the crisis in the United States and the causes in Europe (for instance, how did the housing bubble contribute to the crises in both Europe and the United States? What were some of the key characteristics of the recessions in the United States and Europe? What were some of the key similarities in government policies and actions in response to the crisis? What are the three differences, according to Blinder? Describe them.

PART 2: In the second part of the essay we are going to use our imagination to explore differing perspectives on the crises in Europe and the United States:

Try to put yourself in the position of a Greek worker, let’s say a nurse or a clerk. How do you feel about demands on your government from the European Union and European Central bank that you pay and pension be dramatically cut? Or, perhaps there are recommendations that your job be cut. Provide a brief description.

Compare and contrast this perspective with the perspective of a German worker, let’s say an autoworker or a technology company. How do you feel about demands on your government to bail out the Greek economy?

Next, try to put yourself in the position who has lost his or her job in the financial crisis, say in 2009, and, consequently, can no longer afford mortgage payments, let’s say an autoworker, a construction worker or other worker, or someone working in the financial industry. How do you feel about legislation that like TARP and ARRA? Be specific in your response.

Sample Solution