Part A: Theory and policy
Read http://www.abc.net.au/news/2015-02-13/rba-glenn-stevens-economic- testimony-to-parliament/6090624, describing the reasons for Australian monetary policy. Compare and contrast the approach to monetary policy for each economy. How effective does monetary policy appear to be in each economy? Give reasons for your answer.
Part B: Interest rates and monetary policy: data collection, presentation and analysis
For Part A of the assignment you will investigate the role of the interest rate and monetary policy in the macroeconomy. You will collect, present and analyse GDP growth, investment growth, inflation rate, unemployment rate and interest rate statistics for Australia, Greece, and the USA:
Collect annual data for the real GDP growth rate, real gross fixed capital formation growth rate, the unemployment rate and the consumer price index (CPI) for the three economies….