Students
ECON7013 – Applied Topics in Macroeconomics
2020 – Session 2, Special circumstance
Notice
As part of Phase 3 of our return to campus plan, most units will now run tutorials, seminars and other small group learning activities on campus for the second half-year, while keeping an online version available for those students unable to return or those who choose to continue their studies online.
To check the availability of face to face activities for your unit, please go to timetable viewer. To check detailed information on unit assessments visit your unit's iLearn space or consult your unit convenor.
General Information
Download as PDF
| Unit convenor and teaching staff |
Unit convenor and teaching staff
Unit Convenor
Jeffrey Sheen
Contact via x7287
E4A 430
Thursdays 3-5pm
Lecturer
David Orsmond
Xiaoman Selma Huang
|
|---|---|
| Credit points |
Credit points
10
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| Prerequisites |
Prerequisites
Admission to MRes
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| Corequisites |
Corequisites
|
| Co-badged status |
Co-badged status
ECON713
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| 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:
- ULO1: Source and interpret macroeconomic data and coherently use the key concepts in macroeconomics.
- ULO2: Apply advanced macroeconomic models to understand the behaviour of key macroeconomic variables.
- ULO3: Identify and interpret topical macroeconomic issues, and use advanced macroeconomic models to understand how policy should respond to the issues.
- ULO4: Co-operate with peers in groups to prepare and present the results of collaboration on current topical issues.
General Assessment Information
Essay topics, mid-session test question paper and final exam question paper will be available on iLearn.
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 |
|---|---|---|---|
| Final online examination | 40% | No | In final exam period |
| Group Research and Presentation | 15% | No | Week 13 |
| Mid-session test | 20% | No | Week 7 |
| Essay | 25% | No | Week 12 |
Final online examination
Assessment Type 1: Examination
Indicative Time on Task 2: 30 hours
Due: In final exam period
Weighting: 40%
A two-hour open book examination will be held during the University Examination Period, and will be on based on material covered in lectures from weeks 7 to 13 (inclusive).
On successful completion you will be able to:
- Source and interpret macroeconomic data and coherently use the key concepts in macroeconomics.
- Apply advanced macroeconomic models to understand the behaviour of key macroeconomic variables.
- Identify and interpret topical macroeconomic issues, and use advanced macroeconomic models to understand how policy should respond to the issues.
Group Research and Presentation
Assessment Type 1: Presentation
Indicative Time on Task 2: 15 hours
Due: Week 13
Weighting: 15%
These are seminar presentations by the groups formed by the lecturer in week 1. Each group will be allocated a current report by a major agency, such as the Reserve Bank, to be analysed and presented as a seminar in weeks 9-12. Students are required to present a summary of the key points in the report. The group must meet regularly throughout the session to do the necessary research on the allocated report, and to prepare a presentation. 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 and coherently use the key concepts in macroeconomics.
- Apply advanced macroeconomic models to understand the behaviour of key macroeconomic variables.
- Identify and interpret topical macroeconomic issues, and use advanced macroeconomic models to understand how policy should respond to the issues.
- Co-operate with peers in groups to prepare and present the results of collaboration on current topical issues.
Mid-session test
Assessment Type 1: Quiz/Test
Indicative Time on Task 2: 15 hours
Due: Week 7
Weighting: 20%
A mid-session test will be held in week 7, and will be based on material covered in lectures from weeks 1 to 6 (inclusive).
On successful completion you will be able to:
- Source and interpret macroeconomic data and coherently use the key concepts in macroeconomics.
- Apply advanced macroeconomic models to understand the behaviour of key macroeconomic variables.
- Identify and interpret topical macroeconomic issues, and use advanced macroeconomic models to understand how policy should respond to the issues.
Essay
Assessment Type 1: Essay
Indicative Time on Task 2: 20 hours
Due: Week 12
Weighting: 25%
The 1,750-word essay is due before the beginning of the seminar in Week 12. Students choose any one of the topics on contemporary issues provided by the lecturer, conduct a literature review, and write a reasoned essay about the issue and its implications for macroeconomics. A significant weight in the marking will be placed on the literature review and research methodology used.
On successful completion you will be able to:
- Source and interpret macroeconomic data and coherently use the key concepts in macroeconomics.
- Apply advanced macroeconomic models to understand the behaviour of key macroeconomic variables.
- Identify and interpret topical macroeconomic issues, and use advanced macroeconomic models to understand how policy should respond to the issues.
1 If you need help with your assignment, please contact:
- the academic teaching staff in your unit for guidance in understanding or completing this type of assessment
- the Writing Centre for academic skills support.
2 Indicative time-on-task is an estimate of the time required for completion of the assessment task and is subject to individual variation
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
eg O. Blanchard and J. Sheen, Macroeconomics, 2014, 4th edition, Pearson
A good reference text for this unit is:
S. Williamson, Macroeconomics , 2018, 6th global edition, Pearson
Useful readings for the topics are given in the Unit Schedule, and extra readings may be recommended during the lectures.
Unit Web Page
You can access the ECON8013/7013 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 at least by midday of the lecture.
Unit Schedule
This a planned schedule, and there may be minor variations as the session progresses.
WEEK 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
Williamson Ch15
WEEK 2 (JS) Low inflation, the natural rate of unemployment
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
Williamson Chs 14-15
WEEK 3 (JS) Links between fiscal policy and monetary policy – the government budget constraint, the fiscal theory of prices, hyperinflation
Blanchard and Sheen 2013 Chs 23-24
Blanchard, O. (2019) Public Debt and Low Interest Rates, American Economic Review, http:\\www.piie.com/system/files/documents/wp19-4.pdf
Cochrane, J.(2011): Understanding Policy in the Great Recession: Some Unpleasant Fiscal Arithmetic. European Economic Review January 2011 https://papers.ssrn.com/sol3/papers.cfm?abstract_id=1619585
WEEK 4 (JS) Digital money and the payments system; the future of cybercurrencies – eg Bitcoin, Libra
Dark, Cameron, Emery, D, Ma,J. and Noone, C. 2019 Cryptocurrency: Ten Years On. RBA Bulletin June 2019 www.rba.gov.au/publications/bulletin/2019/jun/cryptocurrency-ten-years-on.html
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
Kumar, A, Smith. C 2017 Crypto-currencies – An introduction to not-so-funny moneys, www.rbnz.govt.nz/media/ReserveBank/Files/Publications/Analytical%20notes/2017/an2017-07.pdf
WEEK 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
WEEK 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
WEEK 7 MID-SESSION TEST
WEEK 8 (DO) China’s economic emergence: Past, present and future
Orsmond, David (2019), China’s Economic Choices, Lowy Institute Analysis, December https://www.lowyinstitute.org/publications/china-s-economic-choices
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 9 (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 10 Group Seminar: The RBA Statement on Monetary Policy, August 2020 https://www.rba.gov.au/publications/smp/2020/aug/
WEEK 11 Group Seminar: IMF World Economic Outlook 2020 https://www.imf.org/en/Publications/WEO
WEEK 12 Group Seminar: BIS Annual Report 2020 https://www.bis.org/publ/arpdf/ar2020e.htm
WEEK 13 Group Seminar: RBA Financial Stability Review https://www.rba.gov.au/publications/fsr/2020/apr/ (or October, if released)
Policies and Procedures
Macquarie University policies and procedures are accessible from Policy Central (https://staff.mq.edu.au/work/strategy-planning-and-governance/university-policies-and-procedures/policy-central). Students should be aware of the following policies in particular with regard to Learning and Teaching:
- Academic Appeals Policy
- Academic Integrity Policy
- Academic Progression Policy
- Assessment Policy
- Fitness to Practice Procedure
- Grade Appeal Policy
- Complaint Management Procedure for Students and Members of the Public
- Special Consideration Policy (Note: The Special Consideration Policy is effective from 4 December 2017 and replaces the Disruption to Studies Policy.)
Students seeking more policy resources can visit the Student Policy Gateway (https://students.mq.edu.au/support/study/student-policy-gateway). It is your one-stop-shop for the key policies you need to know about throughout your undergraduate student journey.
If you would like to see all the policies relevant to Learning and Teaching visit Policy Central (https://staff.mq.edu.au/work/strategy-planning-and-governance/university-policies-and-procedures/policy-central).
Student Code of Conduct
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
Results
Results published on platform other than eStudent, (eg. iLearn, Coursera etc.) or released directly by your Unit Convenor, are not confirmed as they are subject to final approval by the University. Once approved, final results will be sent to your student email address and will be made available in eStudent. For more information visit ask.mq.edu.au or if you are a Global MBA student contact globalmba.support@mq.edu.au
Student Support
Macquarie University provides a range of support services for students. For details, visit http://students.mq.edu.au/support/
Learning Skills
Learning Skills (mq.edu.au/learningskills) provides academic writing resources and study strategies to help you improve your marks and take control of your study.
The Library provides online and face to face support to help you find and use relevant information resources.
Student Services and Support
Students with a disability are encouraged to contact the Disability Service who can provide appropriate help with any issues that arise during their studies.
Student Enquiries
For all student enquiries, visit Student Connect at ask.mq.edu.au
If you are a Global MBA student contact globalmba.support@mq.edu.au
IT Help
For help with University computer systems and technology, visit http://www.mq.edu.au/about_us/offices_and_units/information_technology/help/.
When using the University's IT, you must adhere to the Acceptable Use of IT Resources Policy. The policy applies to all who connect to the MQ network including students.
Changes since First Published
| Date | Description |
|---|---|
| 26/07/2020 | Correction to unit code in Delivery section |