ECON326-21S2 (C) Semester Two 2021

Macro and Monetary Economics

15 points

Start Date: Monday, 19 July 2021
End Date: Sunday, 14 November 2021
Withdrawal Dates
Last Day to withdraw from this course:
  • Without financial penalty (full fee refund): Sunday, 1 August 2021
  • Without academic penalty (including no fee refund): Friday, 1 October 2021


Derivation of the demand for money. Monetary policy under uncertainty. Analysis of alternative monetary rules. Taylor rules. Term structure of interest rates. Financial crises. Economic Growth.

This course aims to give the student a solid grounding in monetary economics. Its core parts are:

• Microfoundations of money demand.
• Monetary policy under uncertainty.
• Instrument-choice problem.
• Strategies for monetary policy in open and closed economies. Term structure of interest rates.
• Exchange rate crises: causes and possible solutions.
• Global Financial Crisis: how central banks coped with it.
• Sovereign Debt Crisis: threat to monetary stability in the Euro zone?
• Economic growth

Learning Outcomes

At the conclusion of the course the student should be able to
- Identify a menu of targeting strategies for a central bank
- Assess the policy options available to a central bank in both closed and open macroeconomic environments
- Evaluate what central banks can do in crisis situations.

University Graduate Attributes

This course will provide students with an opportunity to develop the Graduate Attributes specified below:

Critically competent in a core academic discipline of their award

Students know and can critically evaluate and, where applicable, apply this knowledge to topics/issues within their majoring subject.

Employable, innovative and enterprising

Students will develop key skills and attributes sought by employers that can be used in a range of applications.

Globally aware

Students will comprehend the influence of global conditions on their discipline and will be competent in engaging with global and multi-cultural contexts.


(1)  ECON206; (2) MATH102 or
MATH199. RP: ECON207

Recommended Preparation

Timetable 2021

Students must attend one activity from each section.

Lecture A
Activity Day Time Location Weeks
01 Wednesday 12:00 - 14:00 Jack Erskine 445
19 Jul - 29 Aug
13 Sep - 24 Oct
Tutorial A
Activity Day Time Location Weeks
01 Wednesday 15:00 - 16:00 Psychology - Sociology 307
19 Jul - 29 Aug
13 Sep - 24 Oct
02 Thursday 16:00 - 17:00 Jack Erskine 101
19 Jul - 29 Aug
13 Sep - 24 Oct

Course Administrator

Alfred Guender

Indicative Fees

Domestic fee $831.00

International fee $3,875.00

* All fees are inclusive of NZ GST or any equivalent overseas tax, and do not include any programme level discount or additional course-related expenses.

For further information see Department of Economics and Finance .

All ECON326 Occurrences

  • ECON326-21S2 (C) Semester Two 2021