Lecturer
Dr Salonkara Chaudhuri
Course overview
- Study period
- Semester 2, 2025 (28/07/2025 - 22/11/2025)
- Study level
- Undergraduate
- Location
- St Lucia
- Attendance mode
- In Person
- Units
- 2
- Administrative campus
- St Lucia
- Coordinating unit
- Economics School
Theory and practice of fiscal and monetary policy over the short/medium term. Conventional and unconventional monetary policy. Business cycles and stabilization policy. Exchange rate regimes. Labour markets and unemployment. Microfounded macroeconomic models. Macroecomic data analysis.
This course covers topics in macroeconomic policy at the intermediate level. The focus is on fiscal and monetary policyﾠover the short/medium term.
The course combines theory and data analysis. On the theory side, we study aggregate activity through the lenses of “microfounded” macroeconomic models. The data part focuses on analysing actual macroeconomic data from Australia and the rest of the world.ﾠ
Course requirements
Assumed background
It is assumed that students have previously covered material in the areas of macroeconomics and microeconomics at the intermediate level. Students are also expected toﾠbe reasonably comfortable with basic algebra, basic calculus, constrained optimisation, and with spreadsheet software (e.g. Excel).
Prerequisites
You'll need to complete the following courses before enrolling in this one:
ECON1050 + (ECON2020 or 2021)
Course contact
School enquiries
Student Enquiries, School of Economics
All enquiries regarding student and academic administration (i.e. non-course content information, e.g., class allocation, timetables, extension to assessment due date, etc.) should be directed to enquiries@economics.uq.edu.au.
Enquiries relating specifically to course content should be directed to ECON2040@uq.edu.au.
Course staff
Course coordinator
Dr Suzanne Bonner
Tutor
Mr Luke Palmer
Mr Oscar Tan
Mr Daniel Liao
Timetable
The timetable for this course is available on the UQ Public Timetable.
Additional timetable information
Lectures commence in Week 1.
Tutorials commence in Week 2
Please see the Learning Activities section of this Course Profile for the timetabling implications of public holidays.
Important Dates:
- Public Holidays: Wed 13 August (Royal Queensland Show Holiday), Mon 6 October (King’s Birthday public holiday).
- Mid-Semester Break: 29 September – 3 October. Semester 2 classes recommence on Tue 7 October.
Students should refer to the timetable prior to the commencement of classes to ensure that they have the most up to date information, as from time to time late room changes may occur.
Aims and outcomes
The main goal of the course is to equip students with a rigorous framework for understanding both macroeconomic phenomena and the role of the government in the economy.
The first part of the course concentrates on building an intertemporal "workhorse" model for analysing short/medium term policies. This model will be microfounded, in the sense that macroeconomic phenoma will result from aggregating the decisions of individual agents (eg. consumers and firms). The model will be casted in a closed economy and in an open economy framework, to study the roles of fiscal and monetary policy.
The course aims to build a tight link between the models presented and the actual data.
Learning outcomes
After successfully completing this course you should be able to:
LO1.
Apply core theoretical macroeconomic models to explain real world macroeconomic phenomena.
LO2.
Show how aggregate macroeconomic activity is shaped by microeconomic behaviour and equilibrium restrictions.
LO3.
Identify key contemporary macroeconomic issues and discuss possible solutions towards improving current policies.
LO4.
Illustrate the trade-offs present in designing fiscal and monetary policy over the short/medium term.
LO5.
Collect, analyse, and interpret macroeconomic data from Australia and the rest of the world.
Assessment
Assessment summary
| Category | Assessment task | Weight | Due date |
|---|---|---|---|
| Quiz |
Online Quiz
|
17% |
18/08/2025 - 22/08/2025
Due 4pm |
| Examination |
In-semester Exam
|
30% |
18/09/2025 2:00 pm |
| Tutorial/ Problem Set |
Assignment
|
17% |
20/10/2025 - 31/10/2025
Due 4pm |
| Examination |
End-of-semester Exam
|
36% |
End of Semester Exam Period 8/11/2025 - 22/11/2025 |
Assessment details
Online Quiz
- Online
- Mode
- Written
- Category
- Quiz
- Weight
- 17%
- Due date
18/08/2025 - 22/08/2025
Due 4pm
- Learning outcomes
- L01, L02, L03, L04, L05
Task description
The Online Quiz consists of various questions which assess the understanding of the topics studied in class. This quiz aims to test your preliminary understanding of the topics to support your learning and provide feedback at an early point in the semester.
The topics covered in the Online Quiz will be communicated via Blackboard.
This task has been designed to be challenging, authentic and complex. Whilst students may use AI and/or MT technologies, successful completion of assessment in this course will require students to critically engage in specific contexts and tasks for which artificial intelligence will provide only limited support and guidance.
A failure to reference generative AI use may constitute student misconduct under the Student Code of Conduct.
To pass this assessment, students will be required to demonstrate detailed comprehension of their written submission independent of AI tools.
Submission guidelines
Enter answers into Blackboard/Turnitin by the due date and time.
Deferral or extension
You cannot defer or apply for an extension for this assessment.
No extensions are possible, even with a medical certificate. Access is blocked after the due date and time.
Late submission
You will receive a mark of 0 if this assessment is submitted late.
A penalty of 100% for non-submission will apply.
In-semester Exam
- Mode
- Written
- Category
- Examination
- Weight
- 30%
- Due date
18/09/2025 2:00 pm
- Other conditions
- Time limited, Secure.
- Learning outcomes
- L01, L02, L03, L04, L05
Task description
This will be a 60-minute exam with 10 minutes perusal.
The exam will consist of short answer and problem-solving questions.
The topics covered in the In-Semester Exam will be communicated via Blackboard.
This assessment task is to be completed in-person. The use of any generative Artificial Intelligence (AI) tools is not permitted. Any attempted use of Generative AI may constitute student misconduct under the Student Code of Conduct.
Exam details
| Planning time | 10 minutes |
|---|---|
| Duration | 60 minutes |
| Calculator options | (In person) Casio FX82 series only or UQ approved and labelled calculator |
| Open/closed book | Closed book examination - no written materials permitted |
| Exam platform | Paper based |
| Invigilation | Invigilated in person |
Submission guidelines
Completed during the lecture.
Deferral or extension
You may be able to defer this exam.
Late submission
You will receive a mark of 0 if this assessment is submitted late.
Assignment
- Online
- Mode
- Written
- Category
- Tutorial/ Problem Set
- Weight
- 17%
- Due date
20/10/2025 - 31/10/2025
Due 4pm
- Learning outcomes
- L01, L02, L03, L04, L05
Task description
The Assignment consists of problem solving, essay, and/or short answer questions which assess the understanding of the topics studied in class. Collection, manipulation, and interpretation of macroeconomic data may be also required.
The topics covered in the Assignment will be communicated via Blackboard.
This task has been designed to be challenging, authentic and complex. Whilst students may use AI and/or MT technologies, successful completion of assessment in this course will require students to critically engage in specific contexts and tasks for which artificial intelligence will provide only limited support and guidance.
A failure to reference generative AI use may constitute student misconduct under the Student Code of Conduct.
To pass this assessment, students will be required to demonstrate detailed comprehension of their written submission independent of AI tools.
Submission guidelines
The assignment must be submitted electronically via Blackboard/TurnitIn.
Deferral or extension
You may be able to apply for an extension.
The maximum extension allowed is 14 days. Extensions are given in multiples of 24 hours.
Extensions are limited to 14 calendar days to ensure timely feedback to other students.
Late submission
A penalty of 10% of the maximum possible mark will be deducted per 24 hours from time submission is due for up to 7 days. After 7 days, you will receive a mark of 0.
End-of-semester Exam
- Identity Verified
- In-person
- Mode
- Written
- Category
- Examination
- Weight
- 36%
- Due date
End of Semester Exam Period
8/11/2025 - 22/11/2025
- Other conditions
- Time limited, Secure.
- Learning outcomes
- L01, L02, L03, L04, L05
Task description
This will be a 120 minute End-of-semester exam, plus additional 10 minutes reading time.
The exam will be held during the central examination period at a day/time set by Examinations Section.
The exam will cover all topics from lectures and tutorials and will include multiple choice, short answer and problem solving questions.
This assessment task is to be completed in-person. The use of any generative Artificial Intelligence (AI) tools is not permitted. Any attempted use of Generative AI may constitute student misconduct under the Student Code of Conduct.
Exam details
| Planning time | 10 minutes |
|---|---|
| Duration | 120 minutes |
| Calculator options | (In person) Casio FX82 series only or UQ approved and labelled calculator |
| Open/closed book | Closed book examination - no written materials permitted |
| Exam platform | Paper based |
| Invigilation | Invigilated in person |
Submission guidelines
Deferral or extension
You may be able to defer this exam.
Course grading
Full criteria for each grade is available in the Assessment Procedure.
| Grade | Cut off Percent | Description |
|---|---|---|
| 1 (Low Fail) | 0% - 29% |
Absence of evidence of achievement of course learning outcomes. |
| 2 (Fail) | 30% - 46% |
Minimal evidence of achievement of course learning outcomes. |
| 3 (Marginal Fail) | 47% - 49% |
Demonstrated evidence of developing achievement of course learning outcomes |
| 4 (Pass) | 50% - 64% |
Demonstrated evidence of functional achievement of course learning outcomes. |
| 5 (Credit) | 65% - 74% |
Demonstrated evidence of proficient achievement of course learning outcomes. |
| 6 (Distinction) | 75% - 84% |
Demonstrated evidence of advanced achievement of course learning outcomes. |
| 7 (High Distinction) | 85% - 100% |
Demonstrated evidence of exceptional achievement of course learning outcomes. |
Additional course grading information
A student's final overall end of semester percentage mark will be rounded to determine their final grade. For example, 64.5% rounds to 65%, while 64.4% rounds to 64%.
Supplementary assessment
Supplementary assessment is available for this course.
Additional assessment information
Using AI at UQ
Visit the AI Student Hub for essential information on understanding and using Artificial Intelligence in your studies responsibly.
Plagiarism
The School of Economics is committed to reducing the incidence of plagiarism. You are encouraged to read the UQ Student Integrity and Misconduct Policy available in the Policies and Procedures section of this course profile.
The Academic Integrity Module (AIM) outlines your obligations and responsibilities as a UQ student. It is compulsory for all new to UQ students to complete the AIM.
Learning resources
You'll need the following resources to successfully complete the course. We've indicated below if you need a personal copy of the reading materials or your own item.
Library resources
Library resources are available on the UQ Library website.
Learning activities
The learning activities for this course are outlined below. Learn more about the learning outcomes that apply to this course.
Filter activity type by
Please select
| Learning period | Activity type | Topic |
|---|---|---|
Week 1 (28 Jul - 03 Aug) |
Lecture |
Introduction and Macro Measurement GDP measurement, Business Cycle measurement Readings/Ref: BB Resources ; Williamson (Ch. 2); Kurlat (Ch. 1) Learning outcomes: L01, L05 |
Week 2 (04 Aug - 10 Aug) |
Lecture |
Macro Measurement Business Cycle measurement Readings/Ref: BB Resources ; Williamson (Ch. 3); Kurlat (Ch. 12) Learning outcomes: L01, L05 |
Week 3 (11 Aug - 17 Aug) |
Lecture |
Microfoundations The Household Readings/Ref: BB Resources ; Williamson (Ch. 4); Kurlat (Ch. 7) Learning outcomes: L02, L04 |
Week 4 (18 Aug - 24 Aug) |
Lecture |
Microfoundations The Household Readings/Ref: BB Resources ; Williamson (Ch. 9, 11); Kurlat (Ch. 6) Learning outcomes: L02, L04 |
Week 5 (25 Aug - 31 Aug) |
Lecture |
Microfoundations The Firm and the Government Readings/Ref: Williamson (Ch. 11); Kurlat (Ch. 9) Learning outcomes: L02, L04 |
Week 6 (01 Sep - 07 Sep) |
Lecture |
Real Business Cycle Model Equilibrium and Shocks Readings/Ref: BB Resources ; Williamson (Ch. 11); Kurlat (Ch. 9, 13) Learning outcomes: L01, L02, L03, L04, L05 |
Week 7 (08 Sep - 14 Sep) |
Lecture |
Real Business Cycle Model Equilibrium and Shocks Readings/Ref: BB Resources ; Williamson (Ch. 14-15); Kurlat (Ch. 9, 13) Learning outcomes: L01, L02, L03, L04, L05 |
Week 8 (15 Sep - 21 Sep) |
Lecture |
In-Semester Exam In-Semester Exam to be held during lecture hours. |
Week 9 (22 Sep - 28 Sep) |
Lecture |
Money in the Long Run Money aggregates, the RBA, RBC model with Money. Readings/Ref: BB Resources ; Williamson (Ch. 12); Kurlat (Ch. 10-11) Learning outcomes: L01, L02, L03, L04, L05 |
Mid Sem break (29 Sep - 05 Oct) |
No student involvement (Breaks, information) |
No classes during the break |
Week 10 (06 Oct - 12 Oct) |
Lecture |
Money in the Short Run New Keynesian model No tutorials or consultations on Monday 6 October due to public holiday. Students allocated to the Monday tutorial are invited to attend another tutorial for this week only. Readings/Ref: BB Resources ; Williamson (Ch. 14-15); Kurlat (Ch. 14-15) Learning outcomes: L01, L02, L03, L04, L05 |
Week 11 (13 Oct - 19 Oct) |
Lecture |
Money in the Short Run II Learning outcomes: L01, L02, L03, L04, L05 |
Week 12 (20 Oct - 26 Oct) |
Lecture |
The Zero Lower Bound and economic policy New Keynesian model Readings/Ref: BB Resources ; Williamson (Ch. 14-15); Kurlat (Ch. 14-15) Learning outcomes: L01, L02, L03, L04, L05 |
Week 13 (27 Oct - 02 Nov) |
Lecture |
Review Session Learning outcomes: L01, L02, L03, L04, L05 |
Policies and procedures
University policies and procedures apply to all aspects of student life. As a UQ student, you must comply with University-wide and program-specific requirements, including the:
- Student Code of Conduct Policy
- Student Integrity and Misconduct Policy and Procedure
- Assessment Procedure
- Examinations Procedure
- Reasonable Adjustments for Students Policy and Procedure
Learn more about UQ policies on my.UQ and the Policy and Procedure Library.