316-451 Open Economy Macroeconomics

Coordinator:

Prerequisite/s:

Timetable:

Contact:

Objectives:

On completion of this subject students should be able to:

• construct and operate computerised models of the economy;

• interpret the output of the major macroeconometric models of the Australian economy in current use;

• judge the usefulness and the limitations of existing theory in the area of open economy macroeconomics;

• critically evaluate and comment upon contemporary macroeconomic policy debates;

• extend their knowledge of macroeconomic policy modelling via independent study and by taking advanced subjects in this area;

• interpret and critically evaluate key Australian economic statistics.

Content:

The use of open economy macroeconomic models in economic policy analysis. Recent developments in open economy macroeconomic theory; important Australian macroeconomic data sets; the design of macroeconometric models of the Australian economy; the derivation of policy multipliers; policy simulation techniques and sensitivity analysis of economy-wide models; some elements of the modern theory of economic growth; an examination of some current issues in macroeconomic policy.

Assessment: