Monash University

Leader(s): Dr Steph Miller and Dr Michael White

Offered

Clayton First semester 2009 (Day)
Clayton Second semester 2009 (Day)
Australia (Other) First semester 2009 (Off-campus block of classes)
Australia (Other) Second semester 2009 (Off-campus block of classes)

Synopsis

This unit focuses on macroeconomic theory and policy; managing aggregate demand; economic growth and fluctuations. Content covers the following topics in detail:

• open-economy IS-LM framework and AD-AS framework
• principles of monetary and fiscal policy and problems of implementation
• alternative theories of aggregate supply; imperfect information; labour market rigidities
• explaining and correcting inflation and unemployment.

This subject provides an intermediate level treatment of macroeconomic theory and policy. Its central focus is the analysis of the factors and processes that determine the macroeconomic performance of a nation as reflected in such indicators as aggregate output, employment, the price level and exchange rate, and the balance of payments.
Implications of this analysis for the formulation of national economic policy are explored with particular application to Australia.

Objectives

On completion of this subject students should be able to:

• analyse systematically the forces that determine change in macroeconomic performance and living standards in Australia
• understand the relationship between the domestic economy and the international economic environment as reflected in the behaviour of the balance of payments and exchange rates
• evaluate critically the issues underlying important contemporary policy debates in Australia and elsewhere
• understand the nature and relevance of some significant recent developments in macroeconomics
• practice rigorous economic analysis and put that to constructive use in decision-making.

Assessment

Within semester assessment: 40%
Examination (2 hours): 60%

Contact hours

3 hours per week

Prohibitions

ECC2010, ETC2010