This course focuses on the interface between politics and macroeconomics. In the context of fiscal and monetary policy, specific issues include government credibility and reputation and the implications for electoral cycles and inflation-unemployment tradeoffs. Other topics include tax competition capital taxation and seigniorage revenue.

A student successfully completing this course should be able to:
• Understand key issues and questions in political economy.
• Develop some idea about how to think about and analyze situations where political and economic outcomes are intertwined.
• Understand the connection between assumptions made and the conclusions drawn.
• Appreciate the shortcomings of models and to provide alternative improvements.
• Construct logical arguments and provide politico-economic explanations consistent with the  workings of the model used.

3 contact hours per week plus private study time.

At least an average of 65% (or equivalent) in the final two years of an Australian undergraduate degree with introductory level courses in Economics, Statistics and Econometrics.

Please see Course Website