Students

ECON713 – Applied Topics in Macroeconomics

2019 – S2 Evening

General Information

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Unit convenor and teaching staff Unit convenor and teaching staff Unit Convenor
Jeffrey Sheen
jeffrey.sheen@mq.edu.au
Contact via x7287
E4A 430
Thursdays 3-5pm
Lecturer
David Orsmond
david.orsmond@mq.edu.au
Credit points Credit points
4
Prerequisites Prerequisites
Admission to MRes
Corequisites Corequisites
Co-badged status Co-badged status
ECON914
Unit description Unit description
This unit provides the necessary tools to engage with current macroeconomic issues. It will apply rigorous economic analysis to real-world problems, developing an understanding about the relationships between key macroeconomic indicators e.g. inflation, output growth, unemployment, interest rates, wages and profits, stock market indices, exchange rates. The unit will help students to think creatively about the design and constraints of monetary, fiscal and macroprudential policy in normal times and during a crisis. In so doing students will develop the capacity to undertake independent research in macroeconomics.

Important Academic Dates

Information about important academic dates including deadlines for withdrawing from units are available at https://www.mq.edu.au/study/calendar-of-dates

Learning Outcomes

On successful completion of this unit, you will be able to:

  • Source and interpret macroeconomic data, use coherently the key concepts in macroeconomics, and apply advanced macroeconomic models to understand the behaviour of key macroeconomic variables.
  • Co-operate with peers in groups to prepare and present the results of collaboration on current topical issues.
  • Write and discuss advanced macroeconomic analysis in a creative, logical and professional way.

General Assessment Information

No extensions on within-session assessments will be granted for all assessments listed below.

For Essay: There will be a deduction of 10% of the total available marks made from the total awarded mark for each 24 hour period or part thereof that the submission is late (for example, 25 hours late in submission – 20% penalty). This penalty does not apply for cases in which an application for special consideration is made and approved.

For Group Research & Presentation and Final Exam: students who have not submitted the task prior to the deadline or sit the exam will be awarded a mark of 0 for the task, except for cases in which a formal application for Special Consideration is made (via http://www.ask.mq.edu.au/) and approved.

If the application is successful, the missed assessment will be replaced by an supplementary test, which could involve an oral test.

Assessment Tasks

Name Weighting Hurdle Due
Group Research & Presentation 25% No Weeks 9-12
Essay 25% No Week 12
Final Examination 50% No Week 13, in Class

Group Research & Presentation

Due: Weeks 9-12
Weighting: 25%

  • Due in weeks 9-12 as allocated at first lecture.
  • These are seminar presentations by the groups formed by the unit coordinator in week 1. Each group will be allocated a current report by a major agency (eg RBA) to be analysed and presented as a seminar in weeks 9-12.
  • You should present a summary of the key points in the report. You may additionally pick one or two issues to go into greater detail, if you wish.
  • The group must meet regularly throughout the semester to do the necessary research on the allocated report, and to prepare a presentation (eg PDF or PPT) that summarizes the key issues raised in the report. The presentation can be designed to include possible discussion points for the class.
On successful completion you will be able to:
  • Source and interpret macroeconomic data, use coherently the key concepts in macroeconomics, and apply advanced macroeconomic models to understand the behaviour of key macroeconomic variables.
  • Co-operate with peers in groups to prepare and present the results of collaboration on current topical issues.
  • Write and discuss advanced macroeconomic analysis in a creative, logical and professional way.

Essay

Due: Week 12
Weighting: 25%

  • Due online in iLearn through TURNITIN before the beginning of the seminar in Week 12.
  • Choose any one of the topics on contemporary issues provided separately on Ilearn. Research it widely in journal, books, professional magazines etc, and write a reasoned essay about the issue and its implications for macroeconomic outcomes and policy.
  • Format: Maximum 1500 words. You may use any number of figures and diagrams and tables. Use 12 point font, 1.5 line spaces and A4 page size.
  • Remember to cite any writing that is not your own – remember the essays will be submitted online on iLearn through TURNITIN, which can detect copied material from anywhere at any time globally.)

NB Possible topics will be provided in iLearn.
On successful completion you will be able to:
  • Source and interpret macroeconomic data, use coherently the key concepts in macroeconomics, and apply advanced macroeconomic models to understand the behaviour of key macroeconomic variables.
  • Co-operate with peers in groups to prepare and present the results of collaboration on current topical issues.
  • Write and discuss advanced macroeconomic analysis in a creative, logical and professional way.

Final Examination

Due: Week 13, in Class
Weighting: 50%

The end-of-session exam will be closed-book, held in Week 13 in class.  Details of the exam will be discussed in Week 12.
On successful completion you will be able to:
  • Source and interpret macroeconomic data, use coherently the key concepts in macroeconomics, and apply advanced macroeconomic models to understand the behaviour of key macroeconomic variables.
  • Co-operate with peers in groups to prepare and present the results of collaboration on current topical issues.
  • Write and discuss advanced macroeconomic analysis in a creative, logical and professional way.

Delivery and Resources

LECTURES/SEMINARS (refer to https://timetables.mq.edu.au for class time)

 

Required and Recommended Texts and/or Materials

There is no required textbook for this course. It is assumed that you understand well an intermediate macroeconomics textbook (like Blanchard and Sheen Macroeconomics, 2013, Pearson 4th edn). Useful readings for the topics are given in the Unit Schedule. 

 

Unit Web Page

You can access the ECON913/713 web site on iLearn from anywhere on the Internet. To login you need a Username and password. All lecture slides should be available on the iLearn site before the lecture.

Unit Schedule

This a planned schedule, and there may be minor variations as the session progresses.

WEEKS 1-8

TOPIC 1    (JS)      Monetary policy frameworks – inflation targeting, and alternatives

Debelle, G. 2018 Twenty-five Years of Inflation Targeting in Australia RBA Conference Central Bank Frameworks: Evolution or Revolution? 2018

Rogoff, K.  2017. Dealing with monetary paralysis at the zero bound. Journal of Economic Perspectives,  https://scholar.harvard.edu/files/rogoff/files/dealing_with_monetary_paralysis_at_the_zero_bound.pdf

TOPIC 2      (JS)      Forecasting and the RBA’s MARTIN Model

Cusbert, T. and Kendall, E. 2018. Meet MARTIN, the RBA's New Macroeconomic Model, RBA Bulletin March 2018 https://www.rba.gov.au/publications/bulletin/2018/mar/meet-martin-the-rbas-new-macroeconomic-model.html

TOPIC 3    (JS)        Low inflation, the natural rate of unemployment, fiscal theory of prices

Cassidy, N., Rankin,E., Read, M. and Seibold,C.  2019  Explaining Low Inflation Using Models. https://www.rba.gov.au/publications/bulletin/2019/jun/explaining-low-inflation-using-models.html

Blanchard, O. 2018 Should we reject the natural rate hypothesis? Journal of Economic Perspectives, Vol 32, 1 Winter 2018 https://pubs.aeaweb.org/doi/pdf/10.1257/jep.32.1.97

Cochrane, J. 2019 The Fiscal Roots of Inflation, NBER Working Paper 25811,  https://faculty.chicagobooth.edu/john.cochrane/research/papers/decomposition.pdf

TOPIC 4     (JS)        Digital money and the payments system; the future of cybercurrencies – eg Bitcoin, Libra

Cameron, D, Emery, D, Ma,J. and Noone, C. 2019 Cryptocurrency: Ten Years On. RBA Bulletin  June 2019

Philip Lowe: RBA Governor Speech (2018) A Journey Towards a Near Cashless Payments System – Sydney  https://www.rba.gov.au/speeches/2018/sp-gov-2018-11-26.html

TOPIC 5      (DO)      The causes of financial crises and policy responses

Reinhard, C. and K. Rogoff (2008), This Time is Different: Eight Centuries of Financial Folly, NBER Paper 13882, March https://www.nber.org/papers/w13882.pdf

RBA Explainer: The Global Financial Crisis, https://rba.gov.au/education/resources/explainers/pdf/the-global-financial-crisis.pdf

TOPIC 6      (DO)      Financial regulation: Principles and practice

Yuksel M. (2019), ‘A decade of post-crisis G20 financial sector reforms,’ RBA Bulletin, June https://rba.gov.au/publications/bulletin/2019/jun/pdf/a-decade-of-post-crisis-g20-financial-sector-reforms.pdf

Orsmond D. and F. Price (2016), ‘Macroprudential policy frameworks and tools,’ RBA Bulletin, December https://www.rba.gov.au/publications/bulletin/2016/dec/pdf/rba-bulletin-2016-12-macroprudential-policy-frameworks-and-tools.pdf

TOPIC 7       (DO)      China’s economic emergence: Past, present and future

Garnaut, R., L. Song and C. Fang (2018), Overview in 40 years of Chinese economic reform and development (Australian National University Press), http://press-files.anu.edu.au/downloads/press/n4267/pdf/ch02.pdf

Edwards, J. (2018), ‘Economic conflict between America and China,’ Lowy Institute WP, December,  https://www.lowyinstitute.org/sites/default/files/Edwards_Economic%20conflict%20between%20America%20and%20China_WEB_0.pdf

TOPIC 8        (DO)      Low global interest rates: Causes and policy responses

Simon, J. (2015), ‘Low interest rate environments and risks,’ Speech to the Paul Woolley Centre, https://www.rba.gov.au/speeches/2015/sp-so-2015-10-08.html

Summers, L. (2014), ‘Reflections on the new secular stagnation hypothesis’, VoxEU, October, https://voxeu.org/article/larry-summers-secular-stagnation

WEEK 9         Group Seminar: The RBA Statement on Monetary Policy, August 2019 https://www.rba.gov.au/publications/smp/2019/aug/

WEEK 10       Group Seminar: IMF World Economic Outlook 2019  https://www.imf.org/en/Publications/WEO

WEEK 11       Group Seminar: BIS Annual Report https://www.bis.org/publ/arpdf/ar2019e.htm

WEEK 12       Group Seminar: RBA Financial Stability Review https://www.rba.gov.au/publications/fsr/2019/apr/ (or October, if released)

 

 

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Macquarie University students have a responsibility to be familiar with the Student Code of Conduct: https://students.mq.edu.au/study/getting-started/student-conduct​

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Graduate Capabilities

PG - Discipline Knowledge and Skills

Our postgraduates will be able to demonstrate a significantly enhanced depth and breadth of knowledge, scholarly understanding, and specific subject content knowledge in their chosen fields.

This graduate capability is supported by:

Learning outcomes

  • Source and interpret macroeconomic data, use coherently the key concepts in macroeconomics, and apply advanced macroeconomic models to understand the behaviour of key macroeconomic variables.
  • Co-operate with peers in groups to prepare and present the results of collaboration on current topical issues.
  • Write and discuss advanced macroeconomic analysis in a creative, logical and professional way.

Assessment tasks

  • Group Research & Presentation
  • Essay
  • Final Examination

PG - Critical, Analytical and Integrative Thinking

Our postgraduates will be capable of utilising and reflecting on prior knowledge and experience, of applying higher level critical thinking skills, and of integrating and synthesising learning and knowledge from a range of sources and environments. A characteristic of this form of thinking is the generation of new, professionally oriented knowledge through personal or group-based critique of practice and theory.

This graduate capability is supported by:

Learning outcomes

  • Source and interpret macroeconomic data, use coherently the key concepts in macroeconomics, and apply advanced macroeconomic models to understand the behaviour of key macroeconomic variables.
  • Co-operate with peers in groups to prepare and present the results of collaboration on current topical issues.
  • Write and discuss advanced macroeconomic analysis in a creative, logical and professional way.

Assessment tasks

  • Group Research & Presentation
  • Essay
  • Final Examination

PG - Research and Problem Solving Capability

Our postgraduates will be capable of systematic enquiry; able to use research skills to create new knowledge that can be applied to real world issues, or contribute to a field of study or practice to enhance society. They will be capable of creative questioning, problem finding and problem solving.

This graduate capability is supported by:

Learning outcome

  • Write and discuss advanced macroeconomic analysis in a creative, logical and professional way.

Assessment tasks

  • Group Research & Presentation
  • Essay
  • Final Examination

PG - Effective Communication

Our postgraduates will be able to communicate effectively and convey their views to different social, cultural, and professional audiences. They will be able to use a variety of technologically supported media to communicate with empathy using a range of written, spoken or visual formats.

This graduate capability is supported by:

Learning outcome

  • Write and discuss advanced macroeconomic analysis in a creative, logical and professional way.

Assessment task

  • Essay