Students

ECON8013 – Applied Topics in Macroeconomics

2026 – Session 2, In person-scheduled-weekday, North Ryde

General Information

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Unit convenor and teaching staff Unit convenor and teaching staff
Jeffrey Sheen
jeffrey.sheen@mq.edu.au
Credit points Credit points
10
Prerequisites Prerequisites
(Admission to GradCertResMQBS or GradDipResMQBS or MAppEc (1 year)) or ECON6033 or ECON6049 or ECON8091
Corequisites Corequisites
Co-badged status Co-badged status
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 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 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

Late Assessment Submission Penalty  (written assessments)  

 If you submit your assessment late, 5% of the total possible marks will be deducted for each day (including weekends), up to 7 days. Submissions more than 7 days late will receive a mark of 0. 

Example 1 (out of 100): If you score 85/100 but submit 20 hours late, you will lose 5 marks and receive 80/100. 

Example 2 (out of 30): If you score 27/30 but submit 20 hours late, you will lose 1.5 marks and receive 25.5/30. 

 

Extensions:  

Automatic short extension: Some assessments are eligible for automatic short extension. You can only apply for an automatic short extension before the due date. 

Special Consideration: If you need more time due to serious issues and for any assessments that are not eligible for Short Extension, you must apply for Special Consideration. Need help? Review the Special Consideration page for further details. 

Assessment Tasks

Name Weighting Hurdle Due Groupwork/Individual Short Extension AI Approach
Formal examination 40% No During final examination session Individual No Observed
Professional practice: Policy report review 20% No Weeks 10-13 Individual and Group No Observed
Skills development: Macroeconomic issues 40% No 06/10/2026 Individual Yes Open AI

Formal examination

Assessment Type 1: Examination
Indicative Time on Task 2: 35 hours
Due: During final examination session
Weighting: 40%
Groupwork/Individual: Individual
Short extension 3: No
AI Approach: Observed

The purpose of this assessment is for you to demonstrate the expertise you have gained in this unit.

You will participate in a 2-hour, on campus, closed-book 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. 

Deliverable(s): Formal exam

Individual assessment
On successful completion you will be able to:
  • Source and interpret macroeconomic data and 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 issues.

Professional practice: Policy report review

Assessment Type 1: Presentation task
Indicative Time on Task 2: 15 hours
Due: Weeks 10-13
Weighting: 20%
Groupwork/Individual: Individual and Group
Short extension 3: No
AI Approach: Observed

The purpose of this task is for you to work collaboratively in a group on a given report written by an agency (such as a central bank). Each group needs to prepare a presentation discussing the key points in that report.

Skills in focus: 

  • Critical thinking and problem solving
  • Communication skills
  • Discipline knowledge
  • Global, ethical and environmental citizenship 

Deliverable(s): Presentation (10min)

Individual and group assessment
On successful completion you will be able to:
  • Source and interpret macroeconomic data and 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 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.

Skills development: Macroeconomic issues

Assessment Type 1: Professional task
Indicative Time on Task 2: 30 hours
Due: 06/10/2026
Weighting: 40%
Groupwork/Individual: Individual
Short extension 3: Yes
AI Approach: Open AI

The purpose of this assessment is for you to understand how macroeconomic theories and policies are materialized in the real world. You will choose one of the topics on contemporary issues provided by the unit convenor, 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.

Skills in focus:

  • Critical thinking and problem solving
  • Communication skills
  • Discipline knowledge
  • Global, ethical and environmental citizenship 

Deliverable(s): Written essay [max 1500 words]

Individual assessment
On successful completion you will be able to:
  • Source and interpret macroeconomic data and 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 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
  • Academic Success 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.

3 An automatic short extension is available for some assessments. Apply through the Service Connect Portal.

Delivery and Resources

CLASSES There will be learning material in the form of slides posted on iLearn before each session. There will be a 2-hour face-to-face class each Wednessday from 6-8pm

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

 

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-studentedition/?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/

Unit Schedule

Here is an outline of the topics that will be covered week-by-week. Additional readings may be provided on iLearn

Week 1  The Global context, Refresher on ISLM-PC model

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

Jones Chs 3, 5, 6

Week 2  Monetary policy frameworks – inflation targeting and alternatives

BSHW 2025 Ch 23

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 Economic Perspectives, 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 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. 2024 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  Links between fiscal policy and monetary policy – the government budget constraint, the fiscal theory of prices, hyperinflation 

BSHW 2025 Ch 22

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 5 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

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 Productivity,  https://www.pc.gov.au/ongoing/productivity-insights/bulletins/bulletin-2025/productivity-bulletin-2025.pdf

The Economist 14 June 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 6:  China’s economic emergence

P Krugman, 1994, The Myth of Asia’s Miracle, Foreign Affairs Nov-Dec 1994 https://www.brmandel.com/uploads/3/2/4/5/3245755/myth_of_asias-miracle.pdf 

L V de Souza, 2024, Trapped! China and the middle income trap, VOXEU https://cepr.org/voxeu/columns/trapped-china-and-middle-income-trap 

H X Wu, 2014, China’s Growth and Productivity Performance Debate Revisited - Accounting for China’s Sources of Growth with a New Data Set, https://www.conference-board.org/pdf_free/workingpapers/epwp1401.pdf

A Baird, S Nightingale & G Taylor, Behind the Great Wall: China’s Post-pandemic Policy Priorities, RBA Bulletin January 2025, https://www.rba.gov.au/publications/bulletin/2025/jan/behind-the-great-wall-chinas-post-pandemic-policy-priorities.htm

 

Week 7 Financial crises and regulation:

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.pd

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 8  Secular stagnation, potential growth and 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 9  Digital money and the payments system; the future of cryptocurrencies – eg Bitcoin, CBDCs

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

Week 10 Official Australian Economy Report:  RBA

Group 1 will present :

Latest RBA Statement on Monetary Policy (11 August 2026) - https://www.rba.gov.au/publications/smp/

Week 11  Official Global Economy Report: World Bank

Group 2 will present :

Latest World Bank Global Economic Prospects: June 2026 

https://www.worldbank.org/en/publication/global-economic-prospects

Week 12  Official Australian Economy report: The Australian Treasury’s   IGR

Group 3 will present:

The Treasury's Intergenerational Report  - https://treasury.gov.au/publication/2023-intergenerational-report

Week 13  Official Global Economy Report” The IMF’s  WEO

Group 4 will present:

Latest World Economic Outlook from the IMF (October 2026) - https://www.imf.org/en/publications/weo

 

 

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Unit information based on version 2026.05 of the Handbook