Macroeconomic policy – inflation. Unemployment and growth.

Macroeconomic policy – inflation. Unemployment and growth.

1. Outline the experience ofthe Australian economy over the last 10-15 years, making use of major macroeconomic aggregatesthese may be presented in summary tables andlor graphs. Stress should be placed on the challenges facing policy makers atpresent and likely challenges in 2013

2. Discuss the concept of ‘instruments and targets’ in macroeconomic policy and assess how this concept might be

applied to the current policy framework in Australia.

3. Show how the economic theory you have learnt can be used to explain current macroeconomic policy

Some references to get you started

Garnett, A. and Lewis, P., the Economy’, in Aulich, C. and
Wettenhall R.

(eds), Howard’s Fourth Term, New South Wales University Press,
Sydney.

Otto, G. (2007) ‘Central Bank Operating Procedures: How the RBA

Achieves Its Target for the Cash Rate’, Australian Economic Review;
June, Vol. 40 Issue 2, p216-224.

Gordon,

C. and Valentine, T (2009), Economics in Focus: The Global

Financial Crisis, Pearson Education, NSW.