This course will acquaint the student with the analytical tools of modern macroeconomics and show how these tools relate to the problems of small open economies. Policy applications and the relevance of practical problems faced by policy makers will receive special attention. Students will be encouraged to reflect on the macroeconomic policy debates and problems facing their country of permanent residence.

Macroeconomic principles will be reviewed to advanced undergraduate standard and standard macroeconomic methods will be applied to analyse key policy issues at the national and global levels. Key results from growth theory are covered along with approaches to stabilisation along a growth path through fiscal and monetary policies. Models thus developed are then applied to general issues including the contribution of macroeconomic stability to growth and to more specific ones including the roles of policy in the genesis and management of US tech and "China" booms and the recent financial shocks in the US and Europe.

Having completed this course the student can expect to have greatly improved her or his understanding of what determines the rate at which different economies grow, and to be able to predict how particular economies will depart from long run growth trends in response to short run shocks that might include technology changes, military conflicts and capital market booms and busts abroad.

The proposed structure of assessment provides enough intermediate assessment so that there is a sufficient incentive for students not to fall behind during the semester - as indicated before, an important consideration when studying macroeconomics in particular. At the same time it offers some hands-on macroeconomic analysis.

• Workshop questions, 2 @ 5% - 10%
• Mid-semester exam - 20%
• Final exam - 70%

See Course Website:  http://ecocomm.anu.edu.au/courses/course.asp?code=ECON8026

For further information please refer to http://ecocomm.anu.edu.au/courses/course.asp?code=ECON8026