Monash University Handbook 2011 Undergraduate - Unit

Refer to the specific census and withdrawal dates for the semester(s) in which this unit is offered.

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:

1. understand the impact of monetary and government policies on an open economy;
2. explain the policy consequences of consumption and investment decisions and
3. explain how policies affect the trade balance and income;
4. analyse policy responses to assets price movements;
5. evaluate the economic benefits and costs of optimum currency areas.
6. demonstrate in individual summative assessment tasks the acquisition of a comprehensive understanding of the topics covered in this unit.

Assessment

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

Prerequisites

Students must have passed ECW1102 or ECG1102 before undertaking this unit.

Prohibitions

ECW2120, ECW2730