In this course, the emphasis is on how economics matters for policy analysis. Thus, measures of economic performance, and fiscal, monetarist, and trade policies matter primarily in how these are applied across countries. A big component of this course is to understand how government policies may work, so that economic understanding serves this primary purpose. We will examine policy instruments such as exchange rates, interest rates, international debt, budget deficit, and trade deficit, to understand their composition and effects on domestic economy, employment, investment, development, and international trade, the promises they provide, the problems they pose, and what needs to be considered in conjunction with these instruments. Once we have achieved these basics, we will apply our understanding into analyzing how and why government acts and evaluate the effects of such actions across countries, including the US, Asia, and Latin America.

The course covers five general topics:
• General economic indicators: definitions, advantages and drawbacks
• Fiscal policies: multiplier and demand side policies
• Complications for fiscal policies: supply side considerations, crowding-out
• Money and monetarist policies: money supply and money multiplier
• Complications for monetarist policies: budget deficits and debt

Required Resources

Macroeconomic Essentials: Understanding Economics in the news. Cambridge: MIT Press

Author: Kennedy, Peter and Jay Prag

Publisher: MIT Press

Edition: 4th

ISBN: 9780262533348

Staff Feedback

Students will be given feedback in the following forms in this course:

• Written comments
• Verbal comments
• Feedback to the whole class, to groups, to individuals, focus groups

Student Feedback

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.

Class Schedule

Week/Session	Summary of Activities	Assessment
1	Nov 4: Session 1-1	Discussion: Policy Analysis in the Age of Information Economic study in the Age of Information Introduction to course: assessments
2	Nov 4: Session 1-2	Creating a case study: Using the 4Ds: Define, Discuss, Differentiate, Discipline What makes a good case? Examples and illustrations Readings: Weimer, David, and Aidan Vining. 2011. Policy Analysis: Concepts and Practice, 5th edition. New York: Longman Publishers, pp 1-22, 192-204 Borland, Jeff. 2008. Microeconomics: case studies and applications, pp 192-197, 268-270 Trouble on a Tropical Island, Case Study written for the Crawford School of Public Policy in 2015 Volpe, Guglielmo. 2002. “Case Studies.” In The Handbook for Economics Lecturers. Peter Davies, ed.
3	Nov 4: Session 1-3	Budgetary policy making: the politics of government finance and policymaking Political business cycle Government spending and constituency support Readings: Alesina, Alberto. 1995. “Elections, party structure, and the economy.” In Modern Political Economy: Old Topics, New Directions, ed. Jeffrey Banks and Eric Hanushek. New York: Cambridge University Press Block, Steven. 2002. “Political business cycles, democratizatiohn, and economic reform: the case of Africa.” Journal of Development Economics vol 67: 205-228 Brown, David and Wendy Hunter. 1999. “Democracy and Social Spending in Latin America, 1980€‘92.”American Political Science Review 93 no. 4: 779€‘790 Yap, O. Fiona. 2010 “Strategic Government Spending in South Korea and Taiwan: Lessons for Emergent Democracies.” Social Science Quarterly vol 91 no 3: 613-36 Kwon, Hyeok-yong. 2005. Targeting Public Spending in a New Democracy: Evidence from South Korea. British Journal of Political Science vol 35 no 2: 321-341
4	Nov 5: Session 2-1	Government spending and the budget: the economics of government finance Taxes and national savings Deficit versus debt Structural deficits The good and the bad of government spending Readings: The Economist: The fiscal charter: A dangerous gamble Kennedy, Peter. 2010. Chapter 14: Debts and Deficits; Policy for Growth, pp 155-6. Macroeconomic Essentials: Understanding Economics in the news. Cambridge: MIT Press
5	Nov 5: Session 2-2	In-class discussion, write-up (10%) Case study 1: government spending in South Korea Analyse the data from Asian Development Bank and discuss: how much is government spending in the countries? Briefly describe the programs that are most and least costly Based on the readings, analyse and discuss: what are the social, economic, and political reasons for the governments to support social programs? Cite evidence to support your argument in (3). Discuss and provide evidence: What are the constraints on the most and least costly programs in the countries? Readings: Kwon, Huck-ju. 2005. Transforming the Development Welfare State in East Asia. Development and Change vol 36 no 3: 477-497 Fiori, Antonio, and Sunhyuk Kim. 2011. “The Dynamics of Welfare Policymaking in South Korea: Social Movements as Policy Enterpreneurs.” Asian Social Work and Policy Review vol 5: 61-78
6	Nov 7-8	ASSESSMENT 1 DUE, Nov 7, 11:55pm (40%) Please bring a papercopy to class on Nov 8, 10:00am Create a case study of the economics and politics of government spending in one East and Southeast Asian country since 1990
7	Nov 8: Session 3-1	Policy mandates What are they, how to fill them, when do reforms occur The Millennium Development Goals Managing conflict in public policy Readings: Asian Development Bank. 2010. The Millennium Development Goals. 1-57 Thacher, David, and Martin Rein. 2004. “Managing Value Conflict in Public Policy” Governance vol 17 no 4: 457-486 Kraft, Michael, and Scott Furlong. 2010. Public Policy: Politics, Analysis and Alternatives, pp 229-333 Social security administration (US). 2012. Introduction. Social programs around the World. Washington, D.C.
8	Nov 8: Session 3-2	Guest lecture (TBA) Growth and economic development models: Import substitution Essential arguments Necessary conditions Facilitating factors Empirical cases Critical analysis: how well should the import substitution model work? Readings: Lyne, Mona. 2015. “Rethinking the Political Economy of Import Substitution Industralization in Brail: A Clientelist Model of Development Policymaking.” Latin American Politics and Society Hira, Anil. 2007. “Did ISI fail and is neoliberalism the answer for Latin America? Re-assessing common wisdom regarding economic policies in the region.” Brazilian Journal of Political Economy vol 27 no 3e: 345-356 International Relations Organization. Post. “Import Substitution Industralization.” Sanderatne, Nimal. 2011. “Import substitution: Is it a pragmatic economic policy?” The Sunday Times Economic Analysis Students will break up into groups. Each person in the group will take charge of writing up answers to one of the questions raised, critically assessing how materials covered in class discussion and readings up to that point provides the answer: how well should the model work? Eg.: According to the articles, what are the necessary conditions for the model? Given class discussion and readings up to this point regarding the necessary conditions, explain how well will the model work, or why the model would not work. According to the readings, what factors facilitating the model? Given class discussion and readings up to this point regarding facilitating factors, explain how well will the model work, or why the model would not work. Given class discussion and readings up to this point, explain what unconsidered factors or conditions will affect the model, and ho
9	Nov 11: Session 4-1	Growth or economic development models: Export orientation Essential arguments Necessary conditions Facilitating factors Empirical cases Critical analysis: how well should the export oriented model work? Readings: Palley, Thomas. 2011. “The Rise and Fall of Export-led Growth.” Levy Economics Institute of Bard College Bello, Walden. 1992. “Export-led Development in East Asia: A Flawed Model.” Traocaire Development Review, pp 11-27 The Economist. March 25, 2009. “The Export Trap.” Wade, Robert. 1992. “East Asia’s Economic Success: Conflicting Perspectives, Partial Insights, Shaky Evidence.” World Politics vol 65 no 2 Students will break up into groups. Each person in the group will take charge of writing up answers to one of the questions raised, critically assessing how materials covered in class discussion and readings up to that point provides the answer: how well should the model work? Eg.: According to the articles, what are the necessary conditions for the model? Given class discussion and readings up to this point regarding the necessary conditions, explain how well will the model work, or why the model would not work. According to the readings, what factors facilitating the model? Given class discussion and readings up to this point regarding facilitating factors, explain how well will the model work, or why the model would not work. Given class discussion and readings up to this point, explain what unconsidered factors or conditions will affect the model, and ho
10	Nov 11: Session 4-2	In-class discussion, write-up (10%) Case study 2: The Asian Miracle… or Not Essential arguments Economics or politics? Evidence for the Asian miracle Evidence against the Asian miracle Critical analysis: what is the case for an Asian miracle? Readings: Powell, Benjamin. 2004. “State Development Planning: Did it Create an East Asian Miracle?” The Independent Institute, San Jose State University Kay, Cristobal. 2002 Why East Asia overtook Latin America: Agrarian reform, industrialisation and development, Third World Quarterly, 23:6, 1073-1102 Kwon, Jene and Jung Mo Kang. 2011. The East Asian model of economic development. Asian Pacific Economic Literature
11	Nov 12: Session 5-1	Growth or economic development models: Money led growth? Essential arguments Necessary conditions Facilitating factors Empirical cases Critical analysis: how well should monetary model work? Readings: Papademos, Lucas. 2003. “The Contribution of Monetary Policy to Economic Growth.” European Centeral Bank Lacker, Jeffrey. 2016. “Can Monetary policy affect Economic Growth?” Federal Reserve Bank of Richmond John. 2017. “Monetary Policy’s Role in Fostering Sustainable Growth.” Federal Reserve Bank of San Francisco Smith, Christie. 2004. “The long-run effects of monetary policy on output growth.” Reserve bank of New Zealand, Bulletin vol 67 no
12	Nov 12: Session 5-2	How the Middle Class affects economic policy: lessons from East and Southeast Asia When does the middle class emerge Values Implications Consequences Readings: Asian Development Bank. 2010. The Rise of Asia’s Middle Class. 1-55
13	Nov 14-15	ASSESSMENT 2 DUE 11:55pm, Nov 14 (40%) Please bring a paper copy to class on Nov 15, 10:00am Create a case study that critically assesses how government spending in East Asia supports the economics or the politics of the Asian Miracle
14	Nov 15: Session 6-1	Labor employment and economic policy Setting the minimum wage Basic rights Labor regulation The informal sector Readings: Asian Development Bank. 2005. Labor Markets in Asia. 1-108
15	Nov 15: Session 6-2	Session 2 Class discussion: 1) Explain: what are case studies? 2) What are the other types of evidence studied in this course? 3) Compare and contrast: how well do case studies support evidence in policymaking?

Assessment Summary

Assessment task	Value	Due Date	Return of assessment	Learning Outcomes
In class 1 write-up, discussion, and analysis of growth or economic development models: 10 %	10 %	05/11/2019	06/11/2019	1, 2
In class 2 write-up, discussion, and analysis of growth or economic development models: 10 %	10 %	11/11/2019	12/11/2019	3, 4
Assessment 1: 40%	40 %	07/11/2019	28/11/2019	1, 2, 3, 4
Assessment 2: 40%	40 %	14/11/2019	28/11/2019	1, 2, 3, 4, 5

* If the Due Date and Return of Assessment date are blank, see the Assessment Tab for specific Assessment Task details

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• Student Assessment (Coursework) Policy and Procedure
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Assessment Requirements

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.

Assessment Task 1

In class 1 write-up, discussion, and analysis of growth or economic development models: 10 %

Two in-class write-up, discussion, and analysis of Growth or economic development models, 10% each, 20 % total

1. There are several articles/readings on the models
2. Students will break up into groups. Each person in the group will take charge of writing up answers to one of the questions raised, critically assessing how materials covered in class discussion and readings up to that point provides the answer: how well should the model work? Eg.:
3. According to the articles, what are the necessary conditions for the model? Given class discussion and readings up to this point regarding the necessary conditions, explain how well will the model work, or why the model would not work.
4. According to the readings, what factors facilitating the model? Given class discussion and readings up to this point regarding facilitating factors, explain how well will the model work, or why the model would not work.
5. Given class discussion and readings up to this point, explain what unconsidered factors or conditions will affect the model, and how
6. Each group will clearly identify all persons responsible for writing up answers. Students may discuss the answers. However, each student is given marks only for the answer for which s/he has responsibility. So, it is up to the student how much s/he wishes to incorporate the group help, and it is up to the student to prepare for the task.
7. All answers for the questions submitted together for each group at the end of lecture.
8. Answers must draw on materials covered in class discussion, tutorials, and readings up to that point.… 
9. Maximum: 4 pages, double-spaced, per question, total 8 pages per group

In-class discussion, write-up 1 DUE: at the end of lecture on Nov 5

In-class discussion, write-up 2 DUE: at the end of lecture on Nov 11

Assessment Task 2

In class 2 write-up, discussion, and analysis of growth or economic development models: 10 %

See Assessment Task 1

Assessment Task 3

Assessment 1: 40%

Assessment 1 and 2: 40% each, 80% total - Two assessments

Creating cases studies demonstrates evaluation of mastery of concepts and readings, to encourage and facilitate knowledge- and skills-development associated with the learning outcomes. Students will apply course-learning up to that point to create a case-study, based on examples used throughout the course and taking care to address the questions assigned for the case-studies.

Tasks:

1. Identify the key puzzle
2. Discuss the arguments, drawn from the readings
3. Show the data across time, drawn from the Asian Development Bank
4. Address the questions raised, critically comparing the arguments against economic principles and the data

Assessment 1 DUE: 11:55pm, Nov 7 (Turnitin on Wattle)

Assessment 2 DUE: 11:55pm, Nov 14 (Turnitin on Wattle)

Assessment Task 4

Assessment 2: 40%

See Assessment Task 3

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