Impact of Global Financial Crisis: ECON6001 Economic Principles

Learning Outcomes

a) Analyse, individually and in teams the role of fundamental micro- and macroeconomic principles in business decision-making.
d) Critically evaluate the applicability of various theories to economic policies and business decision making related problems.
e) Critically evaluate the role and impact of various forms of government intervention in the economy including business implications.
f) Communicate complex economic concepts to business professionals.

Context:
Assignment 3 assesses students’ understanding of the concept of market failure and allows them to critically evaluate the involvement of the public sector in minimising the adverse effects of market failure to society.
Instructions:
In groups of 3 students you are expected to prepare a 2000 words Research Report which addresses the following:
Select a pair from the following countries that have adopted inflation targeting as a monetary policy tool.
Pair 1 Canada Australia

Pair 2 New Zealand Norway

Pair 3 Sweden United Kingdom

Pair 4 Indonesia Thailand

Pair 5 Botswana Iceland

(a) Critically evaluate how this policy has been successful in ensuring the economies attain stable price stability, steady economic growth and reduced unemployment rate since adoption. Your discussion should include a comparative analysis of the two countries and you must make a judgement on which of the two countries has achieved better outcomes using inflation targeting. (800 words) (25%).

(b) Of the less successful country, provide an explanation of what could have impeded policy implementation. (350 words) (10%).

(c) Using the same two countries selected, critically evaluate how they have utilised fiscal policy during the global financial crisis of 2008/2009. (550 words) (15%).

(d) Justifying with evidence (qualitative and quantitative), which of the two countries was more successful in minimising the potential negative effects of the recession? (300 words) (5%)