Purpose: To enable students to research, critically analyse and evaluate the macroeconomic performance of Australia and New Zealand. This assessment contributes to Learning Outcomes b, c and d.
Task Details: Students will complete a research-based analysis and evaluation of the relative macroeconomic performance of Australia and New Zealand from 1995 to 2015.
Students will follow the following procedure:
(1) Obtain Australian and New Zealand data on the following key macroeconomic indicators: real GDP, interest rates (Australia's cash rate and New Zealand's official cash rate (OCR)), unemployment rate, inflation rate.
(2) Discuss the relation between both countries' real GDP growth rates and inflation rates. Illustrate your discussion with summary statistics and pairwise graphs.
(3) Discuss the relation between unemployment rates in both countries. Illustrate your discussion with summary statistics and pairwise graphs.
(4) Discuss the relation between the cash rate and official cash rate (OCR). Do movements Australia's cash rate drive movements in the New Zealand's OCR? In which country has monetary policy been tighter in the past decade, Australia or New Zealand? Illustrate your discussion with summary statistics and pairwise graphs of the cash rate and the OCR.
(5) Based on your summary statistics, graphs and analysis and discussion above, write a short prediction of the macroeconomic outlook of Australia and New Zealand. Are Australia and New Zealand likely to experience a recession or expansion soon?
Research requirements, presentation and source of data
Research requirements: Students need to support their analysis with a minimum of 10 academic journal articles plus the text. Students aiming for a Credit or higher grade will need to use more sources. Articles should be relevant and recent. Non-academic journal sources may also be used, but relevant and validity should be clarified with the lecturer/tutor.
Presentation: Report format - 2500 + 10% word report - Word .doc or .docx
Title page, executive summary, table of contents, appropriate headings and sub- headings, recommendations/findings/conclusions, in-text referencing and reference list (Harvard - Anglia style), attachments if relevant. Single spaced, font Times New Roman 12pt, Calibri 11pt or Arial 10pt.