- Class Number 2703
- Term Code 2930
- Class Info
- Unit Value 6 units
- Mode of Delivery In Person
- Dr Timo Henckel
- Dr Timo Henckel
- Class Dates
- Class Start Date 25/02/2019
- Class End Date 31/05/2019
- Census Date 31/03/2019
- Last Date to Enrol 04/03/2019
Macroeconomics is concerned with the operation of the economy as a whole, with attention paid to such things as unemployment, inflation, and interest rates, determination of the level of national income, savings and investment, and the exchange rate and the current account of the balance of payments. The course develops a consistent model of the economy to explore the interactions of key macroeconomic markets and variables and to examine the impacts of different kinds of shocks to the economy and the role of government budgetary and monetary policy in influencing the level of economic activity.
Upon successful completion, students will have the knowledge and skills to:
- Understand the core theoretical models used by macroeconomists, in particular the Solow growth model and the AS/AD-model;
- Discuss the usefulness and limitations of these models;
- Explain and understand some of the associated empirical implications and policy issues;
- Critically read and understand many newspaper and magazine articles covering current economic events;
- Have a brief overview of some of the institutional features of the Australian economy and some overseas economies.
While the course’s mission is to teach macroeconomic principles, a strong emphasis will be placed on critical thinking. The lecturer is an active researcher, with expertise in macroeconomics, monetary economics, international finance and behavioural economics. Whenever possible, he draws attention to new ideas and evidence in macroeconomics.
Examination Material or equipment
The final exam will be administered by the central examinations office. The final exam is closed book; the only permitted materials will be a non-programmable calculator.
The following textbooks will form the basis for much of this course:
· Hubbard, R. Glenn, Anne M. Garnett, Philip Lewis, and Anthony O’Brien, Macroeconomics, 4th edition. Melbourne: Pearson, 2018. Copies of this book will be placed on 2-hour loan in the Chifley library.
· CORE, The Economy 1.0, available at http://www.core-econ.org
Earlier editions of Hubbard et. al., in particular the second and third editions of this textbook are also acceptable, though not ideal.
There is also an open-source textbook which students may find useful:
· OpenStax College. (2014). Principles of Macroeconomics, 2nd edition. Houston, TX: OpenStax CNX. https://openstax.org/details/books/principles-macroeconomics
Other materials, available online, will also be prescribed to supplement the text on certain topics. These links will be provided on the Wattle site in advance of the relevant lectures.
Other useful texts for the course include:
· Bernanke, Ben, Nilss Olekalns and Robert Frank, Principles of Macroeconomics, 2nd edition, Sydney: McGraw Hill, 2011.
· Colander, David, Macroeconomics, 8th edition, New York: MacGraw-Whill, 2009.
· Mishkin, Frederic S. Macroeconomics: Policy and Practice, New York: Pearson, 2012.
· Stonecash, Robin, Joshua Gans, Stephen King, and N. Gregory Mankiw Principles of Macroeconomics, 5th edition, Melbourne: Cengage Learning, 2012.
You should try to stay abreast of current events and regularly read the business and economics sections of leading newspapers and magazines (The Economist, Financial Times, Australian Financial Review, the Guardian, etc.)
Students will be given feedback in the following forms in this course:
• The solutions to tutorial assessments and mid-semester exams will be covered in class.
• Written comments, if relevant, will be included in the tutorial assessments returned to students.
• Verbal comments, if necessary, will be provided during consultation time.
ANU is committed to the demonstration of educational excellence and regularly seeks feedback from students. Students are encouraged to offer feedback directly to their Course Convener or through their College and Course representatives (if applicable). The feedback given in these surveys is anonymous and provides the Colleges, University Education Committee and Academic Board with opportunities to recognise excellent teaching, and opportunities for improvement. The Surveys and Evaluation website provides more information on student surveys at ANU and reports on the feedback provided on ANU courses.
This is a class about macroeconomics; that is, the economy as a whole. It differs from micro- economics which focuses on components of the economy. And it also differs from micro- economics in assuming that the whole of an economy may not always behave like the sum of the parts, especially in the short-run. Key macroeconomic policy and economic questions and ideas we will cover include: National Income Accounting; economic productivity and growth across a national or regional economy; management of the business cycle through fiscal and monetary policy tools; Aggregate Demand and Aggregate Supply models; and tools to measure and monitor a macro-economy. This course will take an economic history approach, starting by looking at the Great Depression of the 1930s (which rightfully can be said to have given birth to the field) and going on to other key historical episodes up to the present day as illustrations of macroeconomics in practice. We will also examine the way macroeconomic thought has evolved, especially in response to real-world events. Macroeconomics is very much a field in which failure of models in the field often leads to rather quick re-thinking and re-formulation of ideas.
The Pass component of Macroconomics 1 (ECON1102) consists on three hours of lecture and a one-hour tutorial per week (see the timetable for details on dates, times and locations). Tutorial meetings start in week 2 (See tutorial registration details below).
• Lectures: It is expected that students attend lectures whenever possible and come prepared to them. The handouts for each topic (primarily PPTs) will be available before the lectures in Wattle. The relevant references are included in the last page.
• Tutorials. It is expected that students prepare for tutorials in advance and come ready to answer questions about the problems assigned for each week's tutorial. The details about tutors are available in the contacts section and more detailed information about tutorials can be found in the folder “Tutors and tutorials” in Wattle.
Please contact the administrative office for further guidance.
Students are expected to check the Wattle site for announcements about this course, e.g. changes to timetables or notifications of cancellations. Notifications of emergency cancellations of lectures or tutorials will be posted on the door of the relevant room.
Additional Assessment Information
As a further academic integrity control, students may be selected for a 15-minute individual oral examination of their written assessment submissions.
Any student identified, either during the current semester or in retrospect, as having used ghost writing services will be investigated under the University’s Academic Misconduct Rule.
|Week/Session||Summary of Activities||Assessment|
|1||Unless otherwise specified, chapter numbers refer to the Hubbard et al. textbook. You will be told in advance which sections in the textbook are relevant. For some topics additional sources will be necessary. These will be made available to you prior to the respective lecture(s). This course outline is indicative only. Depending on how the course progresses, the weighting of some topics may change and some topics may be dropped or added. Introduction (Chs 1, 2 & 3)|
|2||Measuring the Economy (Ch 4)|
|3||Measuring the Economy (Ch 4)|
|4||Economic Growth (Chs 5 & 6)||Group presentation (different for each group, beginning in week 4; groups will be allocated and presentation times decided in week 3 or 4; presentation topics will be emailed to presenters 7 days prior to the respective presentation)|
|5||The Labour Market (Ch 7)||Assignment 1|
|6||Inflation and Finance (Ch 8)|
|7||The Short-Run Model of the Economy (Chs 9)||Midterm Online Quiz|
|8||AS and AD Analysis (Ch 10) Different Schools of Thought (Ch 10 Appendix)|
|9||Monetary Policy (Chs 11 & 12)|
|10||Fiscal Policy (Ch 13)|
|11||Open Economy Macroeconomics (Ch 14)||Assignment 2|
|12||Miscellanea and Behavioural Macroeconomics|
|13||Examination Period||Final Exam|
Enrolment in tutorials will be completed online through Wattle.
|Assessment task||Value||Due Date||Return of assessment||Learning Outcomes|
|Assignment 1||10 %||25/03/2019||05/04/2019||2,3,4,5|
|Midterm Quiz||10 %||23/04/2019||26/04/2019||2,3,4,5|
|Assignment 2||10 %||20/05/2019||31/05/2019||1,2,3,4,5|
|Final Examination||50 %||03/06/2019||05/07/2019||1,2,3,4,5|
|Tutorial Participation||10 %||18/02/2019||31/05/2019||1,2,3,4,5|
ANU has educational policies, procedures and guidelines, which are designed to ensure that staff and students are aware of the University’s academic standards, and implement them. Students are expected to have read the Academic Misconduct Rule before the commencement of their course. Other key policies and guidelines include:
The ANU is using Turnitin to enhance student citation and referencing techniques, and to assess assignment submissions as a component of the University's approach to managing Academic Integrity. For additional information regarding Turnitin please visit the ANU Online website. Students may choose not to submit assessment items through Turnitin. In this instance you will be required to submit, alongside the assessment item itself, hard copies of all references included in the assessment item.
Moderation of Assessment
Marks that are allocated during Semester are to be considered provisional until formalised by the College examiners meeting at the end of each Semester. If appropriate, some moderation of marks might be applied prior to final results being released.
Students taking this course are expected to commit at least 11 hours a week to completing the work. This will include:
· 3 hours a week: lecture
· 1 hour a week: tutorial
· At least 7 hours a week: reading, research, writing, lecture and tutorial preparation
10% of the overall course grade are awarded for tutorial participation. Hence, students are strongly encouraged to attend the tutorials.
It bears repeating: this is an on-campus course. Attendance at all teaching events, while not compulsory, is expected in line with “Code of Practice for Teaching and Learning”, clause 2 paragraph (b). Outside work commitments are, generally speaking, not acceptable grounds for missing tutorials and lectures. Furthermore, for pedagogical reasons, based on 15+ years of experience, worked solutions of the weekly problem sets will not be provided. Students who, through unavoidable and unplanned occurrences, are unable to attend a tutorial class one week are encouraged to work through the problems and attend a consultation session for discussion and solutions.
Please see information above, under assessments.
Assessment Task 1
Learning Outcomes: 2,3,4
10%, compulsory & non-redeemable
Students, grouped into pairs, will have to prepare a short analysis studying macroeconomic data. Each group will prepare a brief written summary of no more than one typed page (not counting graphs and tables) and give a 5-7 minute presentation at the beginning of each tutorial, beginning in week 4. Students will be emailed their topics by the lecturer and have one week to prepare their presentations.
The student pairs will be formed in week 3 or 4. Students will be randomly assigned partners by the head tutor and/or lecturer.
Assessment Task 2
Learning Outcomes: 2,3,4,5
10%, compulsory & non-redeemable
Take-home tasks to be handed in writing, involving problem-solving questions and modelling exercises.
These are individual assignments. The topics will be made available on Wattle one week prior to the due date. We will endeavour to return the marked assignments before the end of week 6.
Assessment Task 3
Learning Outcomes: 2,3,4,5
10%, compulsory & non-redeemable
There will be one mid-term quiz, testing the entire material covered in the first six weeks. It will be held on Tuesday in week 7.
The mid-term quiz will consist of multiple choice questions only and will be delivered online. Students will have 30 minutes to complete a random selection of questions from a large bank of multiple choice questions. Further details about the exam will be provided closer to the date.
Assessment Task 4
Learning Outcomes: 1,2,3,4,5
10%, compulsory & non-redeemable
Take-home tasks, similar to Assignment 1, to be handed in writing, involving problem-solving questions and modelling exercises.
Assessment Task 5
Learning Outcomes: 1,2,3,4,5
50%, compulsory & non-redeemable
The final exam will test the entire material covered throughout the semester, with an emphasis on the second half of the course. (Roughly one third of the exam will cover the first half of the course, and two thirds of the exam will cover the second half of the course.) It will be held during the university examination period.
The format of the final exam has not yet been determined. Most likely, it will consist of three parts. The first part contains multiple choice questions (MCQ). The second part contains “short answer” questions (SAQ) that typically focus on a single concept. Good answers to these questions range from a couple of sentences to approx. half a page, rarely longer. The third part contains “long answer” questions (LAQ), with several sub-questions, which test your technical skills as well as your general understanding, intuition and knowledge of macroeconomics.
Answers on exams should be clear, neat, relevant and concise. Students will be given a practice exam (with answers) to prepare for the exam.
Assessment Task 6
Learning Outcomes: 1,2,3,4,5
Students will be given marks for the frequency and quality of their oral contributions in tutorials, centred around learning outcomes 2, 3 and 4 described in the course outline. Consequently, students are strongly encouraged to come to tutorials prepared, having clearly attempted the weekly problem sets and reviewed the lecture material.
Tutors will evaluate students' participation in each tutorial. The overall participation mark, which makes up 10% of the overall course grade, will be the arithmetic average of the 9 highest marks obtained in the 11 tutorials.
Academic integrity is a core part of our culture as a community of scholars. At its heart, academic integrity is about behaving ethically. This means that all members of the community commit to honest and responsible scholarly practice and to upholding these values with respect and fairness. The Australian National University commits to embedding the values of academic integrity in our teaching and learning. We ensure that all members of our community understand how to engage in academic work in ways that are consistent with, and actively support academic integrity. The ANU expects staff and students to uphold high standards of academic integrity and act ethically and honestly, to ensure the quality and value of the qualification that you will graduate with. The University has policies and procedures in place to promote academic integrity and manage academic misconduct. Visit the following Academic honesty & plagiarism website for more information about academic integrity and what the ANU considers academic misconduct. The ANU offers a number of services to assist students with their assignments, examinations, and other learning activities. The Academic Skills and Learning Centre offers a number of workshops and seminars that you may find useful for your studies.
You will be required to electronically sign a declaration as part of the submission of your assignment. Please keep a copy of the assignment for your records. Unless an exemption has been approved by the Associate Dean (Education) as submission must be through Turnitin.
In addition to online submissions, students will be asked to submit the identical assignment as a hardcopy in the appropriate assignment boxes next to the RSE student desk. (Details will follow when the assignment is given to the students.) Please keep a copy of tasks completed for your records.
As a further academic integrity control, students may be selected for a 15 minute individual oral examination of their written assessment submissions. Any student identified, either during the current semester or in retrospect, as having used ghost writing services will be investigated under the University’s Academic Misconduct Rule.
Late submission of assessment tasks without an extension are penalised at the rate of 5% of the possible marks available per working day or part thereof. Late submission of assessment tasks is not accepted after 5 working days after the due date, or on or after the date specified in the course outline for the return of the assessment item.
Accepted academic practice for referencing sources that you use in presentations can be found via the links on the Wattle site, under the file named “ANU and College Policies, Program Information, Student Support Services and Assessment”. Alternatively, you can seek help through the Students Learning Development website.
The assignments will be returned during the tutorials and/or lectures as soon as they are marked. An announcement will be made in Wattle.
Extensions and Penalties
Extensions and late submission of assessment pieces are covered by the Student Assessment (Coursework) Policy and Procedure. The Course Convener may grant extensions for assessment pieces that are not examinations or take-home examinations. If you need an extension, you must request an extension in writing on or before the due date. If you have documented and appropriate medical evidence that demonstrates you were not able to request an extension on or before the due date, you may be able to request it after the due date.
Resubmission of Assignments
Re-submission of assignments is not possible.
Distribution of grades policy
Academic Quality Assurance Committee monitors the performance of students, including attrition, further study and employment rates and grade distribution, and College reports on quality assurance processes for assessment activities, including alignment with national and international disciplinary and interdisciplinary standards, as well as qualification type learning outcomes.
Since first semester 1994, ANU uses a grading scale for all courses. This grading scale is used by all academic areas of the University.
Support for students
The University offers students support through several different services. You may contact the services listed below directly or seek advice from your Course Convener, Student Administrators, or your College and Course representatives (if applicable).
- ANU Health, safety & wellbeing for medical services, counselling, mental health and spiritual support
- ANU Diversity and inclusion for students with a disability or ongoing or chronic illness
- ANU Dean of Students for confidential, impartial advice and help to resolve problems between students and the academic or administrative areas of the University
- ANU Academic Skills and Learning Centre supports you make your own decisions about how you learn and manage your workload.
- ANU Counselling Centre promotes, supports and enhances mental health and wellbeing within the University student community.
- ANUSA supports and represents undergraduate and ANU College students
- PARSA supports and represents postgraduate and research students
Macroeconomics, Monetary economics, International finance, Behavioural economics
Dr Timo Henckel