MAE203: The Global Economy - at Deakin University

This intermediate-level Macroeconomics unit builds on the principles of Macroeconomics taught in MAE101. This unit covers important macroeconomics topics, such as business cycles, stabilisation policy, economic recession, the natural rate of unemployment, persistent inflation, and the effects of government debt on the economy. The unit starts with Robert Solow’s Nobel prize-winning model that explains economic growth and economic inequality across countries. You will then be gradually introduced to the macroeconomic framework to understand the temporal shifts in GDP, unemployment, and prices and the policies to manage these fluctuations in line with major schools of thought, such as Keynesian way of thinking. Finally, you will learn about applications of this macroeconomic framework to different exchange rate markets. In this unit, case studies will be used to enhance your understanding of recent developments in the global economy, such as the debt and financial crises, global recession, mining and resources boom, the Covid-19 pandemic, rising inflation worldwide, and the housing market crises. Upon completing this unit, you will have understood the macroeconomic foundations of poverty, inequality, unemployment, and sustainable economic development.

✔ At the completion of this unit, successful students can:

• Describe and apply key macroeconomic concepts in a global context.
• Use suitable macroeconomic models to critically analyse long-run growth and short-run economic fluctuations.
• Critically analyse the role of monetary and fiscal policies in an economy and provide appropriate recommendations or solutions.