PRBE001 – ECONOMICS FOR MANAGERS
ASSIGNMENT 1 2014

TITLE: “MACROECONOMIC POLICIES AND THEIR IMPACTS”

OBJECTIVE:

To critically evaluate the effects of a macroeconomic policy decision upon business, consumers and the national economy generally. The evaluation is to be written up as a business report of around five to eight A4 pages (excluding references and any appendices). The focus of the report has to be a specific policy decision introduced in response to a particular macroeconomic issue, not a lengthy description of the macroeconomic issue itself. A brief description of the relevant macroeconomic issue can form part of the background in the report.

STEPS IN THE ASSIGNMENT:

1. Choose a particular macroeconomic policy decision for evaluation from the list below. You may choose a particular macroeconomic policy decision of your choice in consultation with your lecturer. The topic must be related to the Australian economy.

2. Critically evaluate the policy decision in terms of the rationale for its implementation and its effects upon business, consumers and the national economy generally.

3. Write a report (in the nature of a business report) on the policy decision and its effects upon business, consumers and the national economy generally. The length of the report should be around five to eight A4 pages, plus a list of references and any appendices at the end.

4. The structure of the report should be based around the following headings:

• Executive Summary - this will be the first page.

• Introduction and Background – including a brief description of the macroeconomic issue that led to the policy decision, the rationale behind the policy decision, intended outcomes, time frames and financial costs/benefits.

• Arguments in support of the policy decision.

• Arguments against the policy decision.

5. Summary and Conclusion – including the following evaluation outcomes:

• Whether or not, on balance, the policy decision could be regarded as a sound one (include reasons).
• What outcomes were achieved and were they as intended. For policies not yet implemented, what outcomes are intended to be achieved.
• What were the unintended consequences (if any)? For policies not yet implemented, what unintended consequences could occur.
• What short term benefits were/will be realised (or not), and whether or not longer term benefits are still expected.

6. List of References – include all references used for the evaluation and report, and cite them correctly using the Harvard Referencing System.

7. Attach any supporting tables, graphs, media releases etc. as appendices at the end.

MACROECONOMIC POLICY DECISIONS FOR EVALUATION & REPORT:

1. The expansionary monetary policy decisions of the Reserve Bank of Australia (RBA) during the six months after the global financial crisis (GFC) escalated in September 2008.

2. The tightening monetary policy stance of the RBA in October 2009, as the economy moved into the recovery phase from the GFC.

3. The Australian Government's decision, in October 2008, to guarantee all Australian bank deposits and, for a fee, the wholesale funding of Australia's banks.

4. The first fiscal stimulus package introduced by the Australian Government in October 2008 in response to the escalation of the GFC.

5. The second fiscal stimulus package introduced by the Australian Government in February 2009 in response to worse than expected conditions in the global economy resulting from the GFC.

6. Personal income tax relief and incentives for personal savings and superannuation introduced in the Australian Government Budget for 2010/11.

7. The Australian Government's proposed Flood Levy to fund the rebuilding of areas of Queensland damaged by the severe floods in early 2011.

8. The Australian Government Carbon Tax implemented by then Gillard Government and then repealed by the current government in July 2014.


INFORMATION SOURCES INCLUDE:

• Relevant websites such as those belonging to the Reserve Bank of Australia (RBA) and Australian Treasury.

• Media articles relevant to the chosen policy decision in publications such as the Australian Financial Review (AFR), Business Review Weekly (BRW), Certified Practising Accountants (CPA) updates and the Web.

• Other relevant articles referred to in the session (lecture) notes.

PLAGIARISM:

Students are reminded of the importance of acknowledging and correctly referencing any written material used in their reports. The report should be written in the student's own words as far as possible. Where wording from an external source is being quoted directly, it is essential that this wording be indicated by quotes (“.”) and referenced correctly so that the marker can locate it easily.

Any external material quoted word for word without correct referencing is tantamount to plagiarism and would result in the assignment not being marked. Where there is evidence of some plagiarism, the assignment would need to be re-submitted with the relevant text either re-written or correctly acknowledged. A re-submitted assignment would only be graded as a 'pass' or 'fail'.

If you need to clarify any aspects of CDU policy on plagiarism please refer to the CDU website or discuss with the lecturer.