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Page 1 of 7 ASSESSMENT BRIEF Subject Code and Title ECON6001 Economic Principles Assessment Case Study (Research Based) Individual/Group Group (3 students) Length XXXXXXXXXXWords (+/-10%) Learning...

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Page 1 of 7

ASSESSMENT BRIEF
Subject Code and
Title
ECON6001 Economic Principles
Assessment Case Study (Research Based)
Individual/Group Group (3 students)
Length XXXXXXXXXXWords (+/-10%)
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.
Submission
End of Week 10/ Module XXXXXXXXXX55pm Sunday)

Weighting 30%
Total Marks 100 marks
Submission Instructions:
This assignment must adhere to the following:
1. This assessment must be prepared and submitted as a group of 3 individuals.
2. The assessment is to be prepared in the format of a Business Report. Please ensure that the
eport format is adhered to as strictly as possible. Marks will be lost if any other format is used.
3. Submit as a Word or Pdf document. The assessment has to be properly referenced using the APA
eferencing style. Please note, Wikipedia or Investopedia are not acceptable academic sources.
Reference list, appendices and calculations are not included in the word count.
4. Include the peer review justifying allocation of marks to each group member by remaining
members of the group.
Page 2 of 7

XXXXXXXXXXContext:
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 XXXXXXXXXXwords) (10%).
(c) Using the same two countries selected, critically evaluate how they have utilised fiscal policy
during the global financial crisis of 2008/ XXXXXXXXXXwords) (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%)
In addition to the above, you will also be assessed on the following: (see marking Ru
ic at
the end for more description of expectation).
(e) Context and Purpose (5%)
(f) Critical reasoning, presentation and defence of an argument and/or position (10%)
(g) Analysis and Application with synthesis of new knowledge (15%)
(h) Use of academic conventions and sources of evidence (5%)
(i) Effective communication (5%)
(j) Peer Review (5%)
Page 3 of 7

XXXXXXXXXXLearning Ru
ics
Assessment Attributes Fail (Unacceptable)
Pass
(Functional)
Credit
(Proficient)
Distinction
(Advanced)
High Distinction
(Exceptional)
Grade Description
(Grading Scheme)

Students expected to
produce a well-
structured report
showing knowledge,
critical reasoning and
professionalism
expected of
postgraduate students
Evidence of unsatisfactory achievement of
one or more of the learning objectives of
the course, insufficient understanding of
the course content and/or unsatisfactory
level of skill development.
Evidence of satisfactory
achievement of course
learning objectives, the
development of relevant
skills to a competent
level, and adequate
interpretation and critical
analysis skills.
Evidence of a good level
of understanding,
knowledge and skill
development in relation
to the content of the
course or work of a
superior quality on the
majority of the learning
objectives of the course.
Demonstration of a high
level of interpretation
and critical analysis skills.

Evidence of a high
level of achievement
of the learning
objectives of the
course
demonstrated in
such areas as
interpretation and
critical analysis,
logical argument,
use of methodology
and communication
skills.
Evidence of an
exceptional level of
achievement of learning
objectives across the
entire content of the
course demonstrated in
such areas as
interpretation and
critical analysis, logical
argument, creativity,
originality, use of
methodology and
communication skills.
Context and Purpose

Students should show an
understanding of the
essence of the
assignment, the central
idea(s) to be addressed
and pitch the report
accordingly.



5
Does not meet minimum standard

Demonstrates no awareness of context
and/or purpose of the assignment.








0-2.49
Meets minimum
standard

Demonstrates limited
awareness of context
and/or purpose of the
assignment





XXXXXXXXXX

Moves beyond minimum
standard

Demonstrates consistent
awareness of context
and/or purpose of the
assignment.





XXXXXXXXXX

Exceeds minimum
standard

Demonstrates an
advanced and
integrated
understanding of
context and/or
purpose of the
assignment.


XXXXXXXXXX

Exceeds minimum
standard and exhibits
high levels of
independence

Consistently
demonstrates a
systematic and critical
understanding of
context and purpose of
the assignment.

4.25-5
http:
www.tua.edu.au/media/50742/a240_grading-scheme.pdf

Page 4 of 7

Knowledge and
understanding

The students should
display an
understanding of
monetary policy, fiscal
policy, inflation
targeting and
macroeconomic
variables such as GDP,
inflation and
unemployment. Search
for country specific
statistics and
information important
to obtain.




55

Limited understanding of required
concepts and knowledge

Key components of the assignment are
not addressed.

















0-27.49
Knowledge or
understanding of the
field or discipline.

Resembles a recall or
summary of key ideas.

Often conflates/confuses
assertion of personal
opinion with information
substantiated by
evidence from the
esearch/course
materials.







XXXXXXXXXX
Thorough knowledge or
understanding of the
field or discipline/s.
Supports personal
opinion and information
substantiated by
evidence from the
esearch/course
materials.

Demonstrates a capacity
to explain and apply
elevant concepts.








XXXXXXXXXX
Highly developed
understanding of the
field or discipline/s.

Discriminates
etween assertion of
personal opinion and
information
substantiated by
obust evidence
from the
esearch/course
materials and
extended reading.

Well demonstrated
capacity to explain
and apply relevant
concepts.

XXXXXXXXXX
A sophisticated
understanding of the
field or discipline/s.

Systematically and
critically discriminates
etween assertion of
personal opinion and
information
substantiated by robust
evidence from the
esearch/course
materials and extended
eading.

Mastery of concepts
and application to new
situations/further
learning.

XXXXXXXXXX

Critical reasoning,
presentation and
defence of an
argument and/or
position


It is important to be
able to justify position
taken. Backing up with
academic literature and
Specific position (perspective or
argument) fails to take into account the
complexities of the issue(s) or scope of the
assignment.

Makes assertions that are not justified.





Specific position
(perspective or
argument) begins to take
into account the issue(s)
or scope of the
assignment.

Justifies any conclusions
eached with arguments
not merely assertion.

Specific position
(perspective or
argument) takes into
account the complexities
of the issue(s) or scope of
the assignment. Others’
points of view are
acknowledged.

Justifies any conclusions
eached with well-
Specific position
(perspective or
argument) is
expertly presented
and accurately takes
into account the
complexities of the
issue(s) and scope of
the assignment.

Specific position
(perspective or
argument) is presented
expertly, authoritatively
and imaginatively,
accurately taking into
account the
complexities of the
issue(s) and scope of
the assignment. Limits
Page 5 of 7

other authentic
eferences is important.
Check what experts
such as economists say
about the countries
selected. It is not about
expressing personal
opinions.

10

Answered Same Day Nov 23, 2020 ECON6001 Torrens University Australia

Solution

Soma answered on Nov 26 2020
152 Votes
2
Pair 1: Canada and Australia
a) How inflation targeting policy is successful in achieving the goal both for Canada and Australia:
Inflation targeting monetary policy: an overview
Several countries especially from the advanced world have chosen inflation targeting as the framework for monetary policy over alternative framework. Conventionally, the central banks used to conduct monetary policy based on intermediate targets like monetary aggregates or exchange rates. But during the past decades many small and medium sized advanced economies have
oken such policies of intermediate targets and moved to adopt the inflation rate itself. This new approach to control inflation through the monetary policy is known as inflation targeting monetary policy. The key objective of this monetary policy is to keep the maintain the price stability by keeping the low and stable inflation rate and generate maximum employment in the economy. Many economists are on the belief that various economic goals might give monetary policy an inflationary bias. Inflation targeting policy would help to redress this asymmetry by keeping the inflation rate as the primary goal of the monetary policy. The policy approach is very straight forward: the central banks analyse the future inflation path and compare with the target inflation rate. The difference between the forecasted inflation rate and targeted inflation provides the clear guide lines how much monetary policy need to be adjusted. During last four decades, many advanced countries adopted inflation targeting monetary policy that includes Canada and Australia. The key objective of this research paper is to provide an in-depth analysis of the effective ness of the inflation targeting monetary policy in Canada and Australia. (Guy Debelle, 1998)
Inflation targeting policy in Canada:
Canada has adopted the inflation target monetary policy in 1991. Canada is the second central bank after New Zeeland that has adopted Inflation target as the monetary policy framework replacing the earlier monetary policy strategy relied on exchange rate and money supply. The key objective of Canada’s monetary policy is to keep the inflation low, stable and predictable. This would help to encourage the Canadian to take spending investment decision with more confidence, promotes long term investment, contributes to sustained job growth and greater productivity that in turn improve the standard of living and stimulates economic growth. Inflation target is at the core of the Canada’s monetary policy framework. Bank of Canada has set the inflation target as 2 percent. It is the midpoint of 1 and 3 percent of inflation This target is jointly set by the government and Bank of Canada and also reviewed every five years. In Canada, Bank’s Governing Council has the primary responsibility to conduct the day to day monetary policy. The rate is announced by the Bank eight times in a year on fixed announcement dates. In order to achieve the inflation target rate, the key policy instrument is the interest rate. When the inflation is below the target, Bank of Canada lowers the interest rate. On the other hand, it raises the interest rate when the inflation is above the target level. (bankofcanada, 2014)
Bank of Canada has adjusted the monetary policy in such a way so that the inflation rate converges with the long-term rate of 2 percent. Bank of Canada has stuck to the 2% inflation rate target because the economy has performed well under this target range at least better than expected. Inflation targeting policy in Canada has achieved significant success. Several factors have contributed to such marked success that includes flexible exchange rate against USD that allows to abso
the shock in terms of trade and minimize its impact on domestic output and inflation. Moreover, the fiscal policy stance has also played a very supportive role. (Maurice Obstfeld, 2016)
Inflation Targeting policy in Australia:
Australia has adopted the inflation target policy during 1993 while various other central banks around the world has followed suit over the subsequent decade. At the time of its adoption, the policy was at its infancy. During the last 25 years, the inflation targeting monetary plicy has evolved much in Australia. RBA has kept the target inflation rate at 2-3% level to achieve the economic goal of price stability, obtain full employment and
ing welfare and prosperity to Australian people. The inflation target of RBA is flexible that implies inflation rate of 2-3% must be kept on average overtime, not in every quarters. If the inflation target reaches above the target level, it provides a clear sign of overheating economy. But for Australia, inflation rate remains the target level for a substantial period of time indicating that there is spare capacity in the economy. RBA uses cash rate as the major policy instrument to adjust the economic activity so that inflation becomes consistent with the target. Since for Australia, the inflation rate remains below the target level for a sustained period of time, RBA has lowered the cash rate. The target rate has kept to the 2 to 3 percent level which is considered as sufficiently low that would not affect much people’s economic decisions. This inflation rate is sufficient to achieve the sustainable economic output and employment. (RBA, 2018)
Country specific data and comparison:
In order to analyse the effectiveness of inflation targeting we have collected the country specific data for key macroeconomic indicators that includes real HDP growth rate, inflation rate and the unemployment rate. The data is collected for the period of 2000-2017 from the World bank website. (WorldBank, 2018)
GDP growth rate: (2000-2017)
    Country Name
    Australia
    Canada
    Country Code
    AUS
    CAN
    Series Name
    GDP growth (annual %)
    GDP growth (annual %)
    
    Australia
    Canada...
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