Monetary and Fiscal Policy

• • Week 1-Introduction and measurement issues
  • Week 2-Consumer and firm behaviour
  • Week 3-Consumer and firm behaviour (continued), a closed-economy one-period model
  • Week 4-A closed-economy one-period model (continued)
  • Week 5-A two-period model: the consumption-savings decision
  • Week 6-A real intertemporal model with investment
  • Week 7-A real intertemporal model with investment (continued), business cycles with flexible prices
  • Week 8-Mid-semester test
  • Week 9-Economic growth
  • Week 10-Economic growth (continued)
  • Week 11-Solow model: extensions and applications
  • Week 12-Endogenous growth and the combined Romer-Solow model
  • Week 13-Review and exam preparation

You must either have successfully completed the following subject(s) before starting this subject, or currently be enrolled in the following subject(s) in a prior study period; or enrol in the following subject(s) to study prior to this subject:

• TAS-BEA121-Economic Policy in Action

Please note that your enrolment in this subject is conditional on successful completion of these prerequisite subject(s). If you study the prerequisite subject(s) in the study period immediately prior to studying this subject, your result for the prerequisite subject(s) will not be finalised prior to the close of enrolment. In this situation, should you not complete your prerequisite subject(s) successfully you should not continue with your enrolment in this subject. If you are currently enrolled in the prerequisite subject(s) and believe you may not complete these all successfully, it is your responsibility to reschedule your study of this subject to give you time to re-attempt the prerequisite subject(s)

Additional requirements

No additional requirements

This subject uses a contemporary macroeconomic modelling framework to analyse the role of fiscal and monetary policies on economic outcomes. The study of fiscal policy includes the role of stimulus during recessions, and the impact and consequences of government expenditures and tax policies on its budget, debt and on private sector behaviour. The study of monetary policy includes business cycle stabilization and inflation targeting by central banks with conventional and unconventional policies when the zero lower bound constrains interest rates. Students who successfully complete this subject will be able to critically discuss and examine current economic conditions and policies using economic models as a tool for organising their arguments.

• Mid-semester Test (30%)
• Take-home Exam (40%)
• Group Assignment (30%)

For textbook details check your university's handbook, website or learning management system (LMS).