Students
ECON8013 – Applied Macroeconomic Topics
2021 – Session 2, Special circumstances
Session 2 Learning and Teaching Update
The decision has been made to conduct study online for the remainder of Session 2 for all units WITHOUT mandatory on-campus learning activities. Exams for Session 2 will also be online where possible to do so.
This is due to the extension of the lockdown orders and to provide certainty around arrangements for the remainder of Session 2. We hope to return to campus beyond Session 2 as soon as it is safe and appropriate to do so.
Some classes/teaching activities cannot be moved online and must be taught on campus. You should already know if you are in one of these classes/teaching activities and your unit convenor will provide you with more information via iLearn. If you want to confirm, see the list of units with mandatory on-campus classes/teaching activities.
Visit the MQ COVID-19 information page for more detail.
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
|
|---|---|
| Credit points |
Credit points
10
|
| Prerequisites |
Prerequisites
ECON633 or ECON6033 or ECON6049 or ECON6050
|
| Corequisites |
Corequisites
|
| Co-badged status |
Co-badged status
ECON713
|
| 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 of 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. |
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 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.
- ULO5: Write and discuss advanced macroeconomic analysis in a creative, logical and professional way.
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 |
|---|---|---|---|
| Mid-session test | 20% | No | Week 7 |
| Group Research and Presentation | 15% | No | Week 13 |
| Final online examination | 40% | No | In final exam period |
| Essay | 25% | No | Week 12 (Thursday 2pm) |
Mid-session test
Assessment Type 1: Quiz/Test
Indicative Time on Task 2: 15 hours
Due: Week 7
Weighting: 20%
There will be a mid-session test based on material covered in the relevant lectures.
On successful completion you will be able to:
- Source and interpret macroeconomic data and coherently use 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.
- Write and discuss advanced macroeconomic analysis in a creative, logical and professional way.
Group Research and Presentation
Assessment Type 1: Presentation
Indicative Time on Task 2: 15 hours
Due: Week 13
Weighting: 15%
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 towards the end of the session. Students are required to present a summary of the key points in the report. The group must meet regularly throughout the session to complete the necessary research on the allocated report, and to prepare the 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 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.
- Write and discuss advanced macroeconomic analysis in a creative, logical and professional way.
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 all topics and presentations covered in the unit in Weeks 1-13
On successful completion you will be able to:
- Source and interpret macroeconomic data and coherently use 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 (Thursday 2pm)
Weighting: 25%
The 1,500-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, research it widely in journals, books, professional magazines, etc, and write a reasoned essay about the issue and its implications for macroeconomic outcomes and policy.
On successful completion you will be able to:
- Source and interpret macroeconomic data and coherently use 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.
- Write and discuss advanced macroeconomic analysis in a creative, logical and professional way.
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)
This unit will be delivered entirely online.
Pre-recorded lectures in Weeks 1-6 and 8-9 will be available through ECHO in iLearn prior to the assigned weekly time slot in the timetable - Thursdays 2-5pm. These lectures will each be approximately 2 hours in length. In the 3rd hour (Thursdays from 3:30pm), an interactive ZOOM session will be held that all students must attend and participate in.
In Weeks 10-13, the interactive ZOOM session will be for the entire assigned time slot (Thursdays 2-5pm).
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 (but only 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
RBA: Supporting the Economy and Financial System in Response to COVID-19, https://www.rba.gov.au/covid-19/
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
Cameron, D, Emery, D, Ma,J. and Noone, C. 2019 Cryptocurrency: Ten Years On. RBA Bulletin
https://www.rba.gov.au/publications/bulletin/2019/jun/cryptocurrency-ten-years-on.html
Kumar, A, Smith. C 2017 Crypto-currencies – An introduction to not-so-funny moneys
Richards, T., Thompson, C. and Dark, C., 2020, Retail Central Bank Digital Currency: Design Considerations, Rationales and Implications, RBA Bulletin
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 2021
WEEK 11 Group Seminar: IMF World Economic Outlook 2021
WEEK 12 Group Seminar: BIS Annual Report 2021
WEEK 13 Group Seminar: RBA Financial Stability Review, October 2021
Policies and Procedures
Macquarie University policies and procedures are accessible from Policy Central (https://policies.mq.edu.au). 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
Students seeking more policy resources can visit Student Policies (https://students.mq.edu.au/support/study/policies). It is your one-stop-shop for the key policies you need to know about throughout your undergraduate student journey.
To find other policies relating to Teaching and Learning, visit Policy Central (https://policies.mq.edu.au) and use the search tool.
Student Code of Conduct
Macquarie University students have a responsibility to be familiar with the Student Code of Conduct: https://students.mq.edu.au/admin/other-resources/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.
Unit information based on version 2021.03 of the Handbook