This course introduces contemporary theory for examining central questions in macroeconomics: growth, unemployment, inflation, and business cycles.

Learning Outcomes

Upon successful completion, students will have the knowledge and skills to:

1. Be familiar with the main macroeconomic models used to study economic growth and the business cycle
2. Be able to formulate in general equilibrium simple intertemporal models of household and firm behaviour
3. Understand the key shocks and propagation mechanisms present in business cycle models
4. Be able to solve and employ simple stochastic business cycle models to address questions about the macro-economy

Research-Led Teaching

How to do research at the frontier of macroeconomics?

This course aims to bring students to the frontier research and cutting-edge modelling tools in contemporary macroeconomics. Students will be exposed to a variety of macroeconomic models and policy applications.

Examination Material or equipment

N/A

Recommended Resources

• Custom Notes and Slides: Linked from WATTLE
• Recursive Macroeconomic Theory, 4th Edition, 2018 (MIT Press): Main textbook

by Lars Ljungqvist and Thomas J. Sargent (“LS”)

ISBN-13: 978-0262038669

https://library.anu.edu.au/record=b6704253

• Economic Dynamics in Discrete Time, 2014 (MIT Press)

by Jianjun Miao (“Mi”)

ISBN: 978-0262027618

ttps://library.anu.edu.au/record=b6460997

All books are are available from the ANU Library’s 2-Hour Reserve listing.

Scientific Computation:

The modern economics student is expected to possess not just analytical skills but increasingly computational skills, both in academia and in the wider marketplace for economists. You are not expected to have any prior training in such skills, but you are expected to have a flexible and open mind towards learning it as we go.

Staff Feedback

This is a course available by remote access, but there will be significant opportunities for synchronous interaction with teaching staff even if lectures and tutorials are recorded and accessed asynchronously.

In-class Activities

• To maximize your experience and feedback on your progress, please attempt all the tutorial problem sets before attending tutorials.
• Most of the learning is reinforced through solving problems on your own and being able to discuss it with the class afterwards.
• An incentive that encourages you to excel in this dimension is provided in the TP and RA assessment items.

Lecturer and Teaching Assistants' Office Hours

• For maximal value, you should have read the relevant materials (textbook, lecture slides) and attempted problems, before turning up to office hours with questions.
• If you have any difficulties, please do not hesitate to come and see us; and do not wait until the end of semester to do so.
• We are here to assist your learning and also to ensure that your university experience continues to be a fun and rewarding one!
• Note: This course does not encourage last minute rote learning. There will be no additional (i.e., pre-examination) office hours provided beyond Week 12 of the instruction period. You are encourage to seek help early on during the semester.

Tests of Progression and Assignments

• Answers to these activities and general discussions relating to how you understood the material tested will be provided in class.
• Your work will be returned to you with comments.

WATTLE Forum

• Feel free to post short questions related to the course material on WATTLE Forum. The usual internet etiquette applies. The teaching team may answer your questions occasionally. However, please reserve long queries to physical office hours, as we can best help you there.

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). Feedback can also be provided to Course Conveners and teachers via the Student Experience of Learning & Teaching (SELT) feedback program. SELT surveys are confidential and also provide the Colleges and ANU Executive with opportunities to recognise excellent teaching, and opportunities for improvement.

Class Schedule

Week/Session	Summary of Activities	Assessment
1	Introduction and Review	+ Measurements+ Key macro facts+ Policy issues+ Review of Solow-Swan model
2	Overlapping Generations (OLG) Model	Theory and application
3	Neoclassical Growth (NG) Model	Theory, computation and application
4	Fiscal Policy in OLG and NG Models	Assessment 1: Take home questions+ Questions are available in Week 4+ Topics from Weeks 1-4+ Due on Friday at 5 pm of Week 5+ Check Wattle for more information
5	Representative Agent (RA) Model	Theory, computation and application
6	Complete Markets Models: Extensions	Assessment 2: Mid semester exam (in person, 120-180 minutes during lectures): + Week 6+ Topics from Weeks 1-6+ Check Wattle for more information in Week 4
7	Models with Money and Monetary Policy	Theory, computation and application
8	Business Cycles and Stabilisation Policies	Theory, computation and application
9	Representative New Keynesian (RANK) Model and Monetary Policy	Theory, computation and application
10	Large Scale OLG Model with Fiscal Policy	Assessment 3: Take home questions+ Questions are available by the end of Week 9+ Topics from Weeks 5-10+ Due on Friday at 5 pm of Week 11+ Check Wattle for more information.
11	Heterogeneous Agent (HA) Model and Heterogeneous Agent New Keynesian (HANK) Model	Theory, computation and application
12	Topics in Macroeconomics	Fiscal limits, income dynamics, inequality
13	Final exam weeks	Assessment 4: Final exam (in-person, 180 minutes)+ Topics from Weeks 1-12+ Check Wattle for more information in Week 10

Tutorial Registration

+ Tutorials (1 hour per week) will be delivered in person from Week 2.

+ This will be a small class of around 20 students. There will one tutorial session per week.

ANU utilises MyTimetable to enable students to view the timetable for their enrolled courses, browse, then self-allocate to small teaching activities / tutorials so they can better plan their time. Find out more on the Timetable webpage. https://www.anu.edu.au/students/program-administration/timetabling].

Assessment Summary

Assessment task	Value	Due Date	Return of assessment	Learning Outcomes
Test of Progress/Feedback through Wattle	10 %	25/08/2023	31/08/2023	1,2,3,4
Mid-semester exam during lectures (120 -180 minutes)	20 %	30/08/2023	20/09/2023	1,2,3,4
Final Examination (180 minutes)	60 %	01/11/2023	30/11/2023	1,2,3,4
Test of Progress/feedback through Wattle	10 %	20/10/2023	27/10/2023	1,2,3,4

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

Policies

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 Integrity Rule before the commencement of their course. Other key policies and guidelines include:

• Academic Integrity Policy and Procedure
• Student Assessment (Coursework) Policy and Procedure
• Extenuating Circumstances Application
• Student Surveys and Evaluations
• Deferred Examinations
• Student Complaint Resolution Policy and Procedure
• Code of practice for teaching and learning

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 Academic Skills website. In rare cases where online submission using Turnitin software is not technically possible; or where not using Turnitin software has been justified by the Course Convener and approved by the Associate Dean (Education) on the basis of the teaching model being employed; students shall submit assessment online via ‘Wattle’ outside of Turnitin, or failing that in hard copy, or through a combination of submission methods as approved by the Associate Dean (Education). The submission method is detailed below.

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.

Participation

+ The lectures and tutorials will be taught in person.

+ Students are expected to attend all lectures and tutorials.

+ The mid-semester and final exams will be in person, on campus and invigilated by the university staff.

Notes: Students are expected to attend all in-person lectures. The Echo360 recording system is installed in the lecture room. However, there is no guarantee about recording quality. 

Examination(s)

See assessment tasks 1 to 4 above.

Assessment Task 1

Test of Progress/Feedback through Wattle

Students will be given the first homework assignment in week 4. This assignment consists of 3-4 questions. Students are required to submit their report, workout in pdf files and programming code (Matlab or Fortran) through wattle site or email. The exact due date and details will be provided in the course outline as well as in lectures in week 4.  

+ Submission files: a pdf report, tex files, data files and codes via Wattle and email

Value: 10%

Assessment Task 2

Mid-semester exam during lectures (120 -180 minutes)

The mid semester exam will cover topics from Weeks 1 to 6. It will be a in-person invigilated exam and undertaken on campus during lecture times in week 6. There will be 3-4 questions. More information will be provided in lectures and Wattle in week 5 (one week prior to the exam). 

Value: 20%

Assessment Task 3

Final Examination (180 minutes)

The final exam will be held in person and on campus during the University exam period. The final exam will cover all material from weeks 1-12.

More information on exam topics and exam format will be provided in lectures and Wattle site in weeks 10. 

Value: 60%

Assessment Task 4

Test of Progress/feedback through Wattle

Students will be given the second homework assignment in week 10. This assignment consists of 4 questions. Students are required to submit their report, workout and code (online). The exact due date and details will be provided in lectures and wattle in week 10. 

+ Submission: pdf and tex files, data and codes via Wattle and email

Value: 10%

Academic Integrity

Academic integrity is a core part of the ANU culture as a community of scholars. The University’s students are an integral part of that community. The academic integrity principle commits all students to engage in academic work in ways that are consistent with, and actively support, academic integrity, and to uphold this commitment by behaving honestly, responsibly and ethically, and with respect and fairness, in scholarly practice.

The University expects all staff and students to be familiar with the academic integrity principle, the Academic Integrity Rule 2021, the Policy: Student Academic Integrity and Procedure: Student Academic Integrity, and to uphold high standards of academic integrity to ensure the quality and value of our qualifications.

The Academic Integrity Rule 2021 is a legal document that the University uses to promote academic integrity, and manage breaches of the academic integrity principle. The Policy and Procedure support the Rule by outlining overarching principles, responsibilities and processes. The Academic Integrity Rule 2021 commences on 1 December 2021 and applies to courses commencing on or after that date, as well as to research conduct occurring on or after that date. Prior to this, the Academic Misconduct Rule 2015 applies.

 

The University commits to assisting all students to understand how to engage in academic work in ways that are consistent with, and actively support academic integrity. All coursework students must complete the online Academic Integrity Module (Epigeum), and Higher Degree Research (HDR) students are required to complete research integrity training. The Academic Integrity website provides information about services available to assist students with their assignments, examinations and other learning activities, as well as understanding and upholding academic integrity.

Online Submission

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. You do not need to submit via Turnitin.

Regular Assignments (RA) must to be submitted via WATTLE as Jupyter Notebooks with replicable content (unless stated otherwise on RA problem sheet).

Hardcopy Submission

For some forms of assessment (hand written assignments, art works, laboratory notes, etc.) hard copy submission is appropriate when approved by the Associate Dean (Education). Hard copy submissions must utilise the Assignment Cover Sheet. Please keep a copy of tasks completed for your records.

Late Submission

+ Late submission of assessments will not be graded. If an assessment task is not submitted by the due date, a mark of 0 will be automatically awarded.

+ Wrong submission of assessments will not be graded.

Referencing Requirements

The Academic Skills website has information to assist you with your writing and assessments. The website includes information about Academic Integrity including referencing requirements for different disciplines. There is also information on Plagiarism and different ways to use source material.

Returning Assignments

Assignments will be returned through Wattle.

Exams will be made available through the RSE Exam Viewing process.

Extensions and Penalties

Extensions and late submission of assessment pieces are covered by the Student Assessment (Coursework) Policy and Procedure. Extensions may be granted 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

None.

Privacy Notice

The ANU has made a number of third party, online, databases available for students to use. Use of each online database is conditional on student end users first agreeing to the database licensor’s terms of service and/or privacy policy. Students should read these carefully. In some cases student end users will be required to register an account with the database licensor and submit personal information, including their: first name; last name; ANU email address; and other information.
In cases where student end users are asked to submit ‘content’ to a database, such as an assignment or short answers, the database licensor may only use the student’s ‘content’ in accordance with the terms of service – including any (copyright) licence the student grants to the database licensor. Any personal information or content a student submits may be stored by the licensor, potentially offshore, and will be used to process the database service in accordance with the licensors terms of service and/or privacy policy.
If any student chooses not to agree to the database licensor’s terms of service or privacy policy, the student will not be able to access and use the database. In these circumstances students should contact their lecturer to enquire about alternative arrangements that are available.

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 Access 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 all ANU students