Monash University Handbook 2010 Undergraduate - Unit

Synopsis

Macroeconomic policy as it affects the open economy; policy consequences of consumption and investment decisions; analysis of policies with respect to the real exchange rate and trade balance; policy responses to assets price movements; policy goals under different international monetary systems; the economic benefits and costs of optimum currency areas; how policy-makers in Australia try to stabilise the economy.

Objectives

The learning goals associated with this unit are to:

• understand the impact of monetary and government policies on an open economy;
• explain the policy consequences of consumption and investment decisions and
• explain how policies affect the trade balance and income;
• analyse policy responses to assets price movements;
• evaluate the economic benefits and costs of optimum currency areas.

Assessment

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

Chief examiner(s)

Ratbek Dzhumashev

Contact hours

One 2-hour lecture and one 1-hour tutorial per week

Prerequisites

ECW1102

Prohibitions

ECW2120