Students

ECON3011 – Macroeconomic Policy

2025 – Session 2, In person-scheduled-weekday, North Ryde

General Information

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Unit convenor and teaching staff Unit convenor and teaching staff Convenor
Jeffrey Sheen
jeffrey.sheen@mq.edu.au
Credit points Credit points
10
Prerequisites Prerequisites
ECON2004 or ECON204
Corequisites Corequisites
Co-badged status Co-badged status
Unit description Unit description
This unit further develops macroeconomic models with a focus on key contemporary policy and operational issues such as variable inflation rates, interest rates, alternative monetary policy frameworks, fiscal policy constraints, climate change, understanding financial crises, financial regulation and cryptocurrencies. Students develop an understanding of the factors that behind these issues and how key policy institutions such as the RBA, APRA and Treasury seek to address them.
 

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: Analyse and explain macroeconomic policy within a general framework.
  • ULO2: Appraise how monetary and fiscal policies are determined in the context of the current economic environment.
  • ULO3: Critically evaluate the effectiveness of current macroeconomic policy in achieving its stated goals.

General Assessment Information

Late Assessment Submission Penalty (written assessments) Unless a Special Consideration request has been submitted and approved, a 5% penalty (of the total possible mark) will be applied each day a written assessment is not submitted, up until the 7th day (including weekends). After the 7th day, a grade of ‘0’ will be awarded even if the assessment is submitted. Submission time for all written assessments is set at 11.55 pm. A 1-hour grace period is provided to students who experience a technical concern. For any late submissions of time-sensitive tasks, such as scheduled tests/exams, performance assessments/presentations, and/or scheduled practical assessments/labs, students need to submit an application for Special Consideration. 

Assessment Tasks

Name Weighting Hurdle Due
Professional Practice: Policy Evaluation 25% No At 11:55pm on Thursday 30/10/2025 in Week 12
Formal and Observed Learning: Exam 50% No In final examination period in November
Skills Development: Analytical tasks 25% No Week 7

Professional Practice: Policy Evaluation

Assessment Type 1: Report
Indicative Time on Task 2: 20 hours
Due: At 11:55pm on Thursday 30/10/2025 in Week 12
Weighting: 25%

 

The purpose of this assessment is for students to demonstrate their analytical skills in evaluating economic issues and related macroeconomic policies. Students will need to analyse proposed issues, evaluate relevant policies using both academic and policy sources and available data.

Skills in focus:

  • Discipline knowledge
  • Problem solving
  • Critical thinking
  • Work readiness

Deliverable: Written report (max 1,600 words).

This is an individual assessment.

 
On successful completion you will be able to:
  • Appraise how monetary and fiscal policies are determined in the context of the current economic environment.
  • Critically evaluate the effectiveness of current macroeconomic policy in achieving its stated goals.

Formal and Observed Learning: Exam

Assessment Type 1: Examination
Indicative Time on Task 2: 35 hours
Due: In final examination period in November
Weighting: 50%

 

The purpose of this assessment is for you to demonstrate the expertise you have gained in Economic Development. You will participate in a 2-hour exam held during the University Examination period. Important information about the exam will be made available on the unit iLearn page.

You should also review the MQ Exams website for general tips: https://students.mq.edu.au/study/assessment-exams/exams

 
On successful completion you will be able to:
  • Analyse and explain macroeconomic policy within a general framework.
  • Appraise how monetary and fiscal policies are determined in the context of the current economic environment.
  • Critically evaluate the effectiveness of current macroeconomic policy in achieving its stated goals.

Skills Development: Analytical tasks

Assessment Type 1: Quiz/Test
Indicative Time on Task 2: 15 hours
Due: Week 7
Weighting: 25%

 

The purpose of this assessment is for students to demonstrate their analytical skills in evaluating economic issues. Students will apply their skills learned in the unit to show how to solve the issues related to economic structure and policy.

Skills in focus:

  • Discipline knowledge
  • Critical thinking

Deliverable: 80 minutes Quiz.

This is an individual assessment.

 
On successful completion you will be able to:
  • Analyse and explain macroeconomic policy within a general framework.
  • Appraise how monetary and fiscal policies are determined in the context of the current economic environment.

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

CLASSES

There will be some pre-recorded learning material posted on iLearn before each session. There will 

be a 2-hour face-to-face class each Thursday from 1-3pm

 

To access your timetable, visit Class Finder and confirm the day and location (which could change)

on eStudent.

Prizes

VICTOR ARGY PRIZE FOR ECON3011

This prize commemorates Victor Argy who was Professor of Economics at Macquarie University

from 1973 until his death in 1993. The prize, to the value of $350, is awarded for proficiency in

ECON3011 and is open to all candidates proceeding to the degree of Bachelor.

 

RECOMMENDED TEXTS

There is no required textbook for this unit.

It is assumed that you understand well an intermediate macroeconomics textbook eg

O. Blanchard , J. Sheen, S. Huangfu, B. Wang (BSHW) Macroeconomics, 2025, 5h edition, Pearson (https://www.pearson.com/en-au/subject-catalog/p/macroeconomics/P200000011371/9780655713418)

Good reference texts for this unit are:

S Williamson, Macroeconomics , 2018, 6th global edition, Pearson (https://www.pearson.com/en-au/subject-catalog/p/macroeconomics-global-edition/P200000005752/9781292439969)

or

C Jones, Macroeconomics International Student Edition, 6th edition 2024 (https://www.wileydirect.com.au/blog/buy/macroeconomics-international-student-edition/?srsltid=AfmBOoqi1vM9bmAhssaZESNNq3eJ93ZvhCIK5OimT64OnOPlkz0Rrtqv)

Up-to-date commentaries and data on the Australian economy can be found in the following:

  • Reserve Bank of Australia, Bulletin, published monthly: http://www.rba.gov.au
  • Department of the Treasury, Economic Roundup, AGPS, Canberra, published quarterly (available online at http://www.treasury.gov.au/)

Data relating to Australia and other countries are also available on the Internet. Useful sites include the following:

  • ABS Time Series Service: http://www.abs.gov.au
  • Budget Papers for Australia: http://www.treasury.gov.au/
  • Reserve Bank of Australia: http://www.rba.gov.au
  • FRED, https://fred.stlouisfed.org/

Useful readings for the topics are given in the Unit Schedule, and extra readings may be recommended during the lectures.

Unit Schedule

WEEKS 1-2 Refresher on ISLM, AS-AD; Malthusian growth model, Solow growth model, Endogenous growth models 

BSHW 2025 Chs 5-13  

McLeay,M. Radia, A and Thomas R. 2914 Money creation in the modern economy. Bank of England Quarterly Bulletin Q1 2014 •    

Williamson Chs 1,-3, 7-8

Jones Chs 3, 5, 6, 9, 11

 

WEEK 3  Low inflation/high inflation/disinflation 

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

Bernanke, B & Blanchard, O. An analysis of pandemic-era inflation in 11 economies https://www.piie.com/publications/working-papers/2024/analysis-pandemic-era-inflation-11-economies

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 •    

Williamson Chs 14-15

Jones Ch 13 

 

WEEK 4   Secular stagnation, potential growth, technology and inequality 

Arsov, I and Watson, B. 2019 Potential Growth in Advanced Economies RBA Bulletin 12 December 2019 https://www.rba.gov.au/publications/bulletin/2019/dec/potential-growthinadvanced-economies.html

Gordon, R. 2014 US Economic Growth is Over: The Short Run Meets the Long Run, Think Tank 20: Growth, Convergence and Income Distribution: The Road from the Brisbane G-20 Summit: https://www.brookings.edu/wp-content/uploads/2016/07/tt20-united-states-economicgrowth-gordon.pdf

PIIE 2020 How to Fix Economic Inequality? An Overview of Policies for the United States and Other High-Income Economies. (https://www.piie.com/microsites/how-fix-economic-inequality)

 

WEEK 5   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 https://www.rba.gov.au/speeches/2018/spdg-2018-04-12.html

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

RBA Explainer - Unconventional monetary policy. https://www.rba.gov.au/education/resources/explainers/unconventional-monetary-policy.html

Jones Ch12

 

WEEK 6   Links between fiscal policy and monetary policy – the government budget constraint, the fiscal theory of prices, hyperinflation 

BSHW 2025 Chs 22-23

Blanchard, O. (2019) Public Debt and Low Interest Rates, American Economic Review, www.piie.com/system/files/documents/wp19-4.pdf

Blanchard, O. (2021) Fiscal Policy under Low Interest Rates Draft text: https://fiscal-policyunder-low-interest-rates.pubpub.org/

Cochrane, J. (2022) The Fiscal Theory of the Price Level Draft text: https://www.johnhcochrane.com/research-all/the-fiscal-theory-of-the-price-level-1

Jones Ch 18

 

WEEK 7   Mid-session test 

 

WEEK 8 The causes of financial crises and policy responses 

Reinhart, 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

Williamson Ch. 18

 

WEEK 9  Productivity growth: reasons for the decline and solutions for improvement 

M Plumb "Why productivity matters" RBA Speech February 2025, https://www.rba.gov.au/speeches/2025/sp-so-2025-02-27.html

Z Duretto, O Majeed and J Hambur, "Overview: Understanding productivity in Australia and the global slowdown"  The Treasury 2022 https://treasury.gov.au/sites/default/files/2022-10/p2022-325290-overview.pdf

Productivity Commission Quarterly Bulletin March 2025, Productivity: there and back again.  https://www.pc.gov.au/ongoing/productivity-insights/bulletins/quarterly-bulletin-march-2025/bulletin-march-2025.pdf

Productivity Commission Annual Bulletin February 2025, Multifactor Producitvity,  https://www.pc.gov.au/ongoing/productivity-insights/bulletins/bulletin-2025/productivity-bulletin-2025.pdf

The Economist 14 Jne 2025, Factory jobs are overrated. https://www.economist.com/finance-and-economics/2025/06/10/factory-work-is-overrated-here-are-the-jobs-of-the-future

 

WEEK 10  Digital money and the payments system; the future of cryptocurrencies, CBDCs – eg Bitcoin, Ripple, central bank digital currencies (JS)

Dark, C., Emery, D, Ma,J. and Noone, C. 2019 Cryptocurrency: Ten Years On. RBA Bulletin,www.rba.gov.au/publications/bulletin/2019/jun/cryptocurrency-ten-years-on.html

Kumar, A, Smith. C 2018 Crypto-currencies – An introduction to not-so-funny moneys, Journal of Economic Surveys 32,8 https://onlinelibrary.wiley.com/doi/full/10.1111/ joes.12289

Härdle, W. and Harvey, C. and Reule, R., Understanding Cryptocurrencies (March 26, 2019).https://ies.keio.ac.jp/upload/20191125econo_Wolfbang_wp.pdf

Richards, T., Thompson, C., and Dark, C. Sep 2020. Retail central bank digital currency -  design considerations, rationales and implications. RBA Bulletin. https://www.rba.gov.au/publications/bulletin/2020/sep/retail-central-bank-digital-currency-design-considerations-rationales-and-implications.html

Williamson Chs 18

 

WEEKS 11-12-13  Official Australian and global economy reports (JS)

Latest RBA Statement on Monetary Policy (12 August 2025), WEO (October 2025), Intergenerational Report (2023)

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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 connect.mq.edu.au or if you are a Global MBA student contact globalmba.support@mq.edu.au

Academic Integrity

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Unit information based on version 2025.05 of the Handbook