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%)
