Write a paper about Solving the Economic Crisis: What is the Role f...

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Write a paper about Solving the Economic Crisis: What is the Role for the Government?

Structure of the work should include:
1) Abstract
2) Introduction: “Explain why you find your question interesting”
3) Literature of review: “Briefly summarize 2-3 papers that you find relevant”
4) Make a simple model and data
5) Results: Interpret and discuss the results you obtain from your regression
6) Conclusion
7) References
8) The work should be of maximum 6 pages.
9) Page should be A4, 1 inch at all sides (Normal). Text should be ‘Times Roman’ and font size 12. APA style

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(1) Abstract
Governments intervene in times of economic crisis to hasten the return of normal economic performance. Most of these interventions are in the form of policies such as lowering interest rates. Additionally, governments often couple policy interventions with stimulus packages as a way of encouraging the private sector to increase investment and create more jobs. This paper examines the role that the government plays in solving financial crisis, and concludes that governments primarily aim to restore investor confidence. Their basic role is to provide regulatory and policy guidance to enable the free-market to correct to itself, and restore the economy to normalcy.

(2) Introduction
The topic of economic crisis and the role that the government plays in solving it interests me because it appears to contravene the time-tested mechanisms that make capitalism such a great economic system. I would expect that a free-market economy where the forces of demand and supply dictate how the market functions (Franzese, 2003) would find a way to resolve an economic crisis without any form of secondary intervention yet this seems not to be the case. In addition, governments respond to economic crisis in different ways, and I find this odd because one would expect a kind of ‘best practice’ in such responses. In their interventions, governments mainly cite the need to stabilize the economy as their main reason (Franzese, 2003), but this raises important questions about the free-market system which I find interesting....

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