12746 (v.4) Topics in Macroeconomic Theory and Policy 573

Area:	School of Economics and Finance
Credits:	50.0
Contact Hours:	3.0
Lecture:	1 x 3 Hours Weekly
Syllabus:	Theoretical topics will be chosen from - intertemporal macroeconomics, new classical economic theory and new Keynesian economic theory and how they explain economic fluctuations and unemployment, new growth theory, and open economy macroeconomics. Applications will be drawn from the Australian economy, other developed economies and developing economies with a focus on the economies of East Asia.

Unit Outcomes:	On successful completion of this unit students will have- Explained the phenomena of aggregate movements of output, employment, the price level and the exchange rate. Knowledge of the number of different interpretations or schools of thought in macroeconomics, which seek to explain such movements. Assessed each of the different interpretations, Keynesian, new classical and New Keynesian, of the macro economy by their ability to explain the stylised facts of the macro economy. Knowledge of the stylised facts which are the broad regularities, which have been identified, in the statistical property of economic time series. Studied some contemporary issues in international macroeconomics such as different types of exchange rate regimes and capital controls.
Text and references listed above are for your information only and current as of September 30, 2003. Please check with the unit coordinator for up-to-date information.
Unit References:	Blanchard, Olivier Lawrence, Katz, K (1997). What We Know and Do Not Know About the Natural Rate of Unemployment. Journal of Economic Perspectives. (pp 11,1, 51-72). Blinder, A. (1988). The fall and rise of Keynesian economics. The Economic Record. (pp 278-293). Caves, Richard, E., Frankel, J.A. and Jones, R. W. (1993). World Trade and Payments: An Introduction. (sixth edition). New York, Harper-Collins. Corden, W.M. (1994). Economic Policy, Exchange Rates and the International System. Oxford, Oxford University Press. Galbraith, J.K. (1997). Time to Ditch the NAIRU: Journal of Economic Perspectives. (pp 11,1, 93-108). INDECS. (1995). State of Play 8: The Australian Economic Policy Debate. Sydney: Allen and Unwin. Krugman, P.R. and Obstfeld, M. (1991). International Economics: Theory and Policy. (second edition). New York, HarperCollins. McCallum, B. (1999). Recent Developments in the Analysis of Monetary Policy Rules. Federal Reserve Bank of St. Louis Review, 81, 6, 3-11. MacFarlane, I.J. (1999), "Australian Monetary Policy in the Last Quarter of the Twentieth Century" The Economic Record, 75, 430, 213-224. Mankiw N. Gregory (2000) Macroeconomics, fourth edition, New York: Worth.
Unit Texts:	No prescribed texts.

Unit Assessment Breakdown:	Essay (2) each 15%, Seminar Presentations (2) each 10%, Final Examination 50%. This is done by grade/mark assessment.