This course extends and reinforces the material developed in Macroeconomics 2 by analysing a number of policy issues in macroeconomics. Its objective is to show how practical problems can be structured and analysed using macroeconomic models and appropriate data. Most of the applications will be drawn from contemporary and historical Australian experience. Topics to be discussed include measurement and interpretation of macroeconomic aggregates; impact of the world economy on short-run fluctuations in Australia; determinants of economic growth and foreign debt; assessment of the impact of fiscal policy; inflation targets and monetary policy; and the persistence of unemployment.

On successful completion of the course, students will: 
1. be abe to use macroeconomic models to examine and understand recent major economic events in the Australian economy;
2. understand how to use different macroeconomic models to evaluate macreconomic activity;
3. be familiar with the main computational models used in Australia to forecast economic economic activity, and how they are used to evaluate policy proposals;
4. know how to report macroeconomic policy analysis in a coherent way with clear explanations of the economic intuition;

An essay and an end of semester examination.

Two/Three lectures and one tutorial per week throughout the semester.

ECON2101/2111 Macroeconomics 2 (P or H) and ECON2102/2112 Microeconomics 2 (P or H).

Please refer to Course Website