ASSESSMENT 3 BRIEF
Subject Code and Title ECO601 Economic Principles
Assessment Case Analysis
Individual/Group Group
Length 2500 words (+/- 10%)
Learning Outcomes This assessment addresses the following subject learning outcomes:
a) Assess economic systems within the context of resource allocation.
b) Apply and appraise the fundamental principles of microeconomics and macroeconomics.
d) Determine the effect of changes in macroeconomic indicators on business activity and evaluate the effect of monetary and fiscal policy changes on the business environment.
e) Interpret regulatory and political environments and how they impact on business.
Submission Due by 11:55pm AEST/AEDT Sunday end of Module 6.1.
Weighting 40%
Total Marks 100 marks
Assessment Task
As an independent consultant, your company has been contracted by your Government to provide a comparative assessment on the country’s use of monetary policy and fiscal policy during the first two years of COVID-19. This assessment is completed working in a group of three and should produce a report that identifies, discusses and analyses core macroeconomic issues. You are expected to make equal contribution in producing a well-researched and presented report on the issues required.
The assessment is on countries that have not adopted Inflation Targeting, a monetary policy approach that was adopted by some countries in the early 1990s. However, the countries in the table below continue to pursue price stability as a key focus of their monetary policy in order to foster economic growth and reduced unemployment levels.
From the table below, you will be assigned by your Facilitator, a pair of countries to analyse.
A Denmark Indonesia
B Spain South Korea
C Netherlands Bangladesh
D Switzerland Nepal
E Italy Kenya
F France Rwanda
G Belgium Egypt
H Portugal Malawi
I Finland Mozambique
J Venezuela Zambia
K Peru Botswana
L Uruguay Namibia
M Singapore Malaysia
A number of questions should be answered with respect to the countries assigned to you.
Context
Although a number of countries since early 1990s have adopted Inflation Targeting as an important monetary policy tool for sound macroeconomic management, there are still many countries globally that are not using this approach. It is important to perform a comparative evaluation of a pair of such countries in the use of monetary policy during the first two years of COVID-19. In addition, it is vital to also compare how the countries have used fiscal policy to support monetary policy in fending off negative effects of a COVID-19 induced recession. The purpose of this assessment is to test:
• Your understanding of core macroeconomic concepts and policy instruments.
• Your ability to analyse and apply the core concepts in a contemporary situation affecting an economy.
• Your ability to critically evaluate the effectiveness of tools of macroeconomic management such as monetary policy and fiscal policy during a given period of time, in this case following the advent of COVID-19.
Instructions
Using your allocated pair of countries, you are expected to address parts (a) to (e) below.
(a) Provide comparative statistics on real GDP growth rate, unemployment rate and inflation rate for the last 10 years. (15 marks)
(b) Explain how the identified macroeconomic indicators above are related to each other in the context of the observed data and theoretical expectations. You are expected to aid your discussion with graphical illustrations. What key factors are driving the macroeconomic indicators? (15 marks)
(c) Based on academic literature and other authentic sources, critically evaluate the extent to which the pair of countries assigned to you has successfully applied monetary policy in 2020 and 2021 following the advent of COVID-19. With solid justification, explain which country has been more successful. (10 marks)
(d) Based on academic literature and other authentic sources, critically evaluate the extent to which the pair of countries has used fiscal policy to deal with the adverse effects of a COVID-19 recession. (10 marks)
(e) Using information from three peer review journal articles, critically evaluate the success of inflation targeting, a monetary policy approach adopted by some countries since the 1990s. (5 marks)
Consider the following as you work on this assignment:
• Use reliable data sources such of those of international organisations such as country government websites, IMF, World Bank, OECD, Asia Development Bank, CAF- Development Bank of Latin America, Africa Development Bank, journal articles by economists and academics
• Remember to cite inside the report the sources of information used and include the reference list at the end.
• You are expected to take a critical approach when writing the report.
• You will be assessed on how well you address the key questions in the assessments and how well you write the report.
Ensure you strictly follow the Report Format and you include an Executive Summary, Introduction and Conclusion that are properly prepared.
Referencing
It is essential that you use the APA 7th Edition Referencing style for citing and referencing research. Please see more information on referencing in the https://library.torrens.edu.au/academicskills/apa/tool
Submission Instructions
Submit this task via the Assessment link in the main navigation menu in ECO601: Economic Principles. The Learning Facilitator will provide feedback via the Grade Centre in the LMS portal. Feedback can be viewed in My Grades.
Please note during the submission process: If you are required to submit more than one document, once your first item has been uploaded, click ‘Browse Your Computer’ to attach your extra documents as an appendix. Then click Final Submit button.
Academic Integrity
I/We declare that except where I/we have referenced, the work I/we am (are) submitting for this assessment task is my (our) own work. I/We have read and am
(are) aware of Torrens University Australia Academic Integrity Policy and
Procedure viewable online at here
All students are responsible for ensuring that all work submitted is their own and is appropriately referenced and academically written according to the Academic Writing Guide. Students also need to have read and be aware of Torrens University Australia Academic Integrity Policy and Procedure and subsequent penalties for academic misconduct. These are viewable online.
Students also must keep a copy of all submitted material and any assessment drafts.
Special Consideration
To apply for special consideration for a modification to an assessment or exam due to unexpected or extenuating circumstances, please consult the Assessment Policy for Higher Education Coursework and ELICOS and, if applicable to your circumstance, submit a completed Application for Assessment Special Consideration Form to your Learning Facilitator.
Assessment Rubric
Assessment Attributes Fail
(Yet to achieve minimum standard) 0-49% Pass
(Functional)
50-64% Credit
(Proficient) 65-74% Distinction
(Advanced)
75-84% High Distinction
(Exceptional)
85-100%
Knowledge, understanding and application of macroeconomic theories, concepts and policies. Of particular note is Monetary Policy and Fiscal Policy use in macroeconomic management. Must
critically evaluate the success of Inflation Targeting in a given Pair of Countries.
15% Comparative Statistics on Macroeconomic Variables in Last 10 Years
Limited or incorrect investigation of the macroeconomic variables. Functional investigation of the macroeconomic variables. Proficient investigation of the macroeconomic variables. Advanced investigation of the macroeconomic variables. Exceptional investigation of the macroeconomic variables.
15% Relationship between Identified Macroeconomic Variables in Context of Observed Data and Theoretical Expectations
Demonstrates a partially-Demonstrates a functional Demonstrates proficient Demonstrates advanced Demonstrates exceptional developed understanding knowledge of the relationship knowledge of the knowledge of the knowledge of the of the relationship between the Macroeconomic relationship between the relationship between the relationship between the between the variables. Macroeconomic variables. Macroeconomic variables. Macroeconomic variables.
Macroeconomic variables.
10% Critical Evaluation of the How Successful the Pair of Countries has Applied Monetary Policy
Limited or incorrect evaluation of how successfully the pair of countries has applied Monetary Policy.
Functional evidence provided of how well the pair of countries has successfully applied Monetary Policy.
Proficient evidence of how well the pair of countries has applied Monetary Policy.
Advanced evidence of how well the pair of countries has applied Monetary Policy.
Exceptional evidence of how well the pair of countries has applied Monetary Policy.
55%
.
10% Appraising the Extent to Which the Pair of Countries Applied Fiscal Policy to Deal with a COVID-19 Recession
Little evidence of Basic knowledge and Sound knowledge and Good knowledge and Advanced knowledge and knowledge and understanding of Fiscal understanding of Fiscal understanding of Fiscal understanding of Fiscal understanding of Fiscal Policy, and how it was Policy, and how it was Policy, and how it was Policy, and how it was Policy and how it was applied to deal with a COVID-applied to deal with a applied to deal with a applied to deal with a applied to deal with a 19 Recession. COVID-19 Recession. COVID-19 Recession. COVID-19 Recession.
COVID-19 Recession.
.
5% Critical Evaluation of the Success of Inflation Targeting as a Monetary Policy Tool
Little evidence of knowledge and evaluation of the success of Inflation Targeting as a Monetary Policy Tool.
Basic knowledge and evaluation of the success of Inflation Targeting as a Monetary Policy Tool.
Sound knowledge and evaluation of the success of Inflation Targeting as a Monetary Policy Tool. Good knowledge and evaluation of the success of Inflation Targeting as a Monetary Policy Tool. Advanced knowledge and evaluation of the success of Inflation Targeting as a Monetary Policy Tool.
Analysis and application with synthesis of new knowledge in answering the questions in the assignment. 5% Synthesis and Analysis
Limited synthesis and analysis.
Demonstrated analysis and synthesis of new knowledge.
Well-developed analysis and synthesis of new knowledge.
Thoroughly developed and creative analysis and synthesis of new knowledge
Highly sophisticated and creative analysis, synthesis of new with existing knowledge.
10%
5% Application and Recommendation
Limited application and recommendations of theories/models to answer the questions in the report. Some application and recommendations of theories/models to answer the questions in the report. Well-developed application and recommendations of theories/models to answer the questions in the report. Thoroughly developed application of pretested and / or independently developed theories/models. Justified recommendations linked to analysis/synthesis. Strong application pretested and independently developed theories/models. Recommendations are
clearly justified based on the analysis/synthesis.
Evaluation of information selected to support the case analysis
10%
5% Use of sources
Confuses logic and emotion. Information taken from reliable sources but without a coherent analysis or synthesis.
Often conflates/confuses assertion of personal opinion with information substantiated by evidence from the research/course materials.
Supports personal opinion and information substantiated by evidence from the research/course materials. Well demonstrated capacity to explain and apply relevant concepts.
Information is taken from sources with a high level of interpretation/evaluation to develop a comprehensive critical analysis or synthesis.
5% Critical reflection of sources
Viewpoints of experts are taken as fact with little questioning. Analysis and evaluation do not reflect expert judgement, intellectual independence, rigor and adaptability. Identifies logical flaws and critically reflects on viewpoints of experts. Discriminates between assertion of personal opinion and information substantiated by robust evidence from the research/course materials and extended reading. Analysis and evaluation reflect growing judgement, intellectual independence, rigor and adaptability. Systematically and critically discriminates between assertion of personal opinion and information substantiated by robust evidence from the research/course materials and extended reading.
Exhibits intellectual independence, rigor, good judgement and adaptability.
Effective
Communication (Written)
15%
The work demonstrated little understanding or appreciation of standards required for academic writing. Improvements in terms of clarity, grammar, spelling or presentation were required to achieve an acceptable standard.
Poor report writing and layout. The work was presented with sufficient coherence and clarity for the reader to understand the ideas and arguments being proposed. Improvements to writing such as structure and grammar were required to meet academic writing standards.
Functional report writing skills.
The work was written and presented in a satisfactory manner and the writing was clear, grammatically correct and accurate in terms of spelling.
Proficient report writing skills. The work was written and presented to a very high academic standard.
Advanced report writing skills. The work was written and presented to an exemplary academic standard.
Exceptional report writing skills.
Team Work
Does not participate effectively in a team environment for search of
Understands group dynamics and team roles
Builds team’s identity and commitment by leading
5%
information, group discussion and writing assigned tasks.
Hinders the group process and upsets the schedule. Participates effectively in teams and supports the team. Contributes to small group discussions to reach agreement on issues.
Works together with others towards shared goals.
Renegotiates responsibilities to meet needed change. and facilitates team development. and evaluating team’s outcomes.
Implements strategies for enhancing team effectiveness.
Correct citation of key resources and evidence
5%
2.5% Quality of sources
Demonstrates inconsistent use of good quality, credible and relevant resources to support and develop ideas. Demonstrates use of credible and relevant resources to support and develop ideas, but these are not always explicit or well developed. Demonstrates use of credible resources to support and develop ideas. Demonstrates use of good quality, credible and relevant resources to support and develop arguments and statements. Demonstrates use of highquality, credible and relevant resources to support and develop arguments and position statements.
2.5% Referencing
Referencing is omitted or does not resemble APA 7th Edition.
Referencing resembles APA 7th Edition, with frequent or repeated errors. Referencing resembles APA 7th Edition, with occasional errors. APA 7th Edition referencing is almost free from errors. APA 7th Edition referencing is free from errors.