Monash University Handbook 2010 Undergraduate - Unit

Synopsis

This unit examines the scope for policy to improve macroeconomic performance. It will cover: the cyclical behaviour of the economy; the role of monetary, fiscal and exchange rate policies in influencing economic acitivities; the implementation and operation of monetary policy; the relationship of exchange rates to monetary policy; major factors determining movements in interest rates and exchange rates in both the intermediate and long terms.

Objectives

The learning goals associated with this unit are to:

• understand the importance of distinguishing between the short-run and long-run impacts of macroeconomic policy
• understand the importance of and the differences between monetary, fiscal, and exchange rate policies.
• be able to critically assess macroeconomic policy
• understand the implementation and operation of monetary policy
• be familiar with economic factors which are of major interest to bankers and others operating in the finance industry.

Assessment

Within semester assessment: 30%
Examination (2 hours): 70%.

Chief examiner(s)

Siang Ng

Contact hours

3 hours per week

Prerequisites

ECF1100 and ECF1200