Case Analysis Economic Principles

ECON601_Assessment 3_Case Analysis Page 1 of 8
ASSESSMENT 3 BRIEF
Subject Code and Title ECO601 Economic Principles
Assessment Case Analysis
Individual/Group Group
Length 2500 words (+/- 10%)
Learning Outcomes This assessment addresses the following subject
learning outcomes:
a) Assess economic systems within the context of
resource allocation.
b) Apply and appraise the fundamental principles of
microeconomics and macroeconomics.
d) Determine the effect of changes in macroeconomic
indicators on business activity and evaluate the effect of
monetary and fiscal policy changes on the business
environment.
e) Interpret regulatory and political environments and
how they impact on business.
Submission Due by 11:55pm AEST/AEDT Sunday end of Module 6.1.
Weighting 40%
Total Marks 100 marks
Assessment Task
As an independent consultant, your company has been contracted by your Government to provide a
comparative assessment on the country’s use of Inflation Targeting (IT) with another country and
also assess which of the two countries has successfully used fiscal policy during the first two years of
COVID-19. This assessment is completed working in a group of three and should produce a report
that identifies, discusses and analyses core macroeconomic issues. You are expected to make equal
contribution in producing a well-researched and presented report on the issues required.
The assessment is mainly hinged on the concept of Inflation Targeting, a monetary policy approach
that was adopted by some countries in the early 1990s. It was considered a policy that could result,
not only in price stability, but could also foster an environment that could lead to economic growth
and reduced unemployment levels.
ECON601_Assessment 3_Case Analysis Page 2 of 8
From the table below, you will be assigned by your Facilitator, a pair of countries that have adopted
IT.
A USA Turkey
B Ghana Norway
C Israel Philippines
D Peru Australia
E Sweden Colombia
F Brazil Poland
G Japan Mexico
H Iceland Romania
I Russia South Korea
J United Kingdom Thailand
K Canada Czech Republic
L Iceland South Africa
M Chile Serbia
N India Argentina
A number of questions should be answered with respect to the countries assigned to you.
Context
Close to three dozen countries have adopted Inflation Targeting as an important monetary policy
tool for sound macroeconomic management. The pacesetters were New Zealand, Canada, Sweden,
Australia and United Kingdom. It is important to perform a comparative evaluation of how successful
the two given countries have applied this policy. The purpose of this assessment is to test:
 Your understanding of core macroeconomic concepts and policy instruments.
 Your ability to analyse and apply the core concepts in a contemporary situation affecting an
economy.
Your ability to critical evaluate the effectiveness of tools of macroeconomic management such as
Inflation targeting and fiscal policy during a given period of time and also during key events such as
COVID-19.
ECON601_Assessment 3_Case Analysis Page 3 of 8
Instructions
Using your allocated pair of countries, you are expected to address parts (a) to (e) below.
(a) Provide comparative statistics on real GDP growth rate, unemployment rate and inflation rate
for the period 5 years before the introduction of Inflation Targeting and 5 years after. Sources
of useful data could be government websites such as a bureau of statistics, think tanks, IMF,
OECD, Asian Development Bank, CAF-Development Bank of Latin America, and the World
Bank. (15 marks)
(b) Explain how the identified macroeconomic indicators above are related to each other in the
context of the observed data and theoretical expectations. You are expected to aid your
discussion with graphical illustrations. What key factors are driving the macroeconomic
indicators? (15 marks)
(c) Based on academic literature and other authentic sources, critically evaluate the extent to
which the pair of countries assigned to you have successfully applied Inflation Targeting.
With solid justification, explain which country has been more successful. (10 marks)
(d) No country has been spared from the COVID-19 pandemic. While monetary policy is a tool
for macroeconomic management, it is usually used together with fiscal policy. Appraise the
extent to which the pair of countries have used fiscal policy to deal with the adverse effects
of a COVID-19 recession. (10 marks)
(e) Explain to what extent the goal of inflation targeting was able to be fulfilled by the monetary
authorities of the two countries under consideration during 2020 and 2021, the first two
years after the advent of COVID-19. (5 marks)
Consider the following as you work on this assignment:
 Use reliable data sources such of those of international organisations such as country
government websites, IMF, World Bank, OECD, Asia Development Bank, CAF- Development
Bank of Latin America, journal articles by economists and academics
 Remember to cite inside the report the sources of information used and include the
reference list at the end.
 You are expected to take a critical approach when writing the report.
 You will be assessed on how well you address the key questions in the assessments and how
well you write the report.
Ensure you strictly follow the Report Format and ensure you include an Executive Summary,
Introduction and Conclusion that are properly written
Referencing
It is essential that you use the APA 7th Edition Referencing style for citing and referencing research.
Please see more information on referencing in the
https://library.torrens.edu.au/academicskills/apa/tool
ECON601_Assessment 3_Case Analysis Page 4 of 8
Submission Instructions
Submit this task via the Assessment link in the main navigation menu in ECO601: Economic
Principles. The Learning Facilitator will provide feedback via the Grade Centre in the LMS portal.
Feedback can be viewed in My Grades.
Please note during the submission process: If you are required to submit more than one document,
once your first item has been uploaded, click ‘Browse Your Computer’ to attach your extra
documents as an appendix. Then click Final Submit button.
Academic Integrity
I/We declare that except where I/we have referenced, the work I/we am (are)
submitting for this assessment task is my (our) own work. I/We have read and am
(are) aware of Torrens University Australia Academic Integrity Policy and
Procedure viewable online at here
All students are responsible for ensuring that all work submitted is their own and is appropriately
referenced and academically written according to the Academic Writing Guide. Students also need
to have read and be aware of Torrens University Australia Academic Integrity Policy and Procedure
and subsequent penalties for academic misconduct. These are viewable online.
Students also must keep a copy of all submitted material and any assessment drafts.
Special Consideration
To apply for special consideration for a modification to an assessment or exam due to unexpected or
extenuating circumstances, please consult the Assessment Policy for Higher Education Coursework
and ELICOS and, if applicable to your circumstance, submit a completed Application for Assessment
Special Consideration Form to your Learning Facilitator.
ECO601_Assessment 3 Brief Case Analysis Module 5 Page 5 of 8
Assessment Rubric
Assessment
Attributes
Fail
(Yet to achieve minimum
standard)
0-49%
Pass
(Functional)
50-64%
Credit
(Proficient)
65-74%
Distinction
(Advanced)
75-84%
High Distinction
(Exceptional)
85-100%
Knowledge,
understanding and
application of
macroeconomic
theories, concepts and
policies. Of particular
note is Inflation
Targeting and Fiscal
Policy use in
macroeconomic
management.
55%
15% Comparative Statistics on Macroeconomic Variables 5 years Before Inflation Targeting and 5 years After
Limited or incorrect
investigation of the
macroeconomic variables.
Functional investigation of
the macroeconomic
variables.
Proficient investigation of
the macroeconomic
variables.
Advanced investigation of
the macroeconomic
variables.
Exceptional investigation of
the macroeconomic
variables.
15% Relationship between Identified Macroeconomic Variables in Context of Observed Data and Theoretical Expectations
Demonstrates a partiallydeveloped understanding of
the relationship between the
Macroeconomic variables.
Demonstrates a functional
knowledge of the
relationship between the
Macroeconomic variables.
Demonstrates proficient
knowledge of the
relationship between the
Macroeconomic variables.
Demonstrates advanced
knowledge of the
relationship between the
Macroeconomic variables.
Demonstrates exceptional
knowledge of the
relationship between the
Macroeconomic variables.
15% Critical Evaluation of the How Successful the Pair of Countries have Applied Inflation Targeting
Limited or incorrect
evaluation of the success of
Inflation Targeting in the pair
of countries.
Functional evidence
provided of how well the
pair of countries have
applied Inflation
Targeting.
Proficient evidence of how
well the pair of countries
have applied Inflation
Targeting.
Advanced evidence of how
well the pair of countries
have applied Inflation
Targeting.
Exceptional evidence of
how well the pair of
countries have applied
Inflation Targeting.
10% Appraising the Extent to Which the Pair of Countries Applied Fiscal Policy to Deal with a COVID-19 Recession
Little evidence of knowledge
and understanding of Fiscal
Policy and how it was applied
to deal with a COVID-19
Recession.
Basic knowledge and
understanding of Fiscal
Policy, and how it was
applied to deal with a
COVID-19 Recession.
Sound knowledge and
understanding of Fiscal
Policy, and how it was
applied to deal with a
COVID-19 Recession.
Good knowledge and
understanding of Fiscal
Policy, and how it was
applied to deal with a
COVID-19 Recession.
Advanced knowledge and
understanding of Fiscal
Policy, and how it was
applied to deal with a
COVID-19 Recession.
ECO601_Assessment 3 Brief Case Analysis Module 5 Page 6 of 8
Analysis and application
with synthesis of new
knowledge in answering
the questions in the
assignment.
10%
5% Synthesis and Analysis
Limited synthesis and
analysis.
Demonstrated analysis
and synthesis of new
knowledge.
Well-developed analysis
and synthesis of new
knowledge.
Thoroughly developed and
creative analysis and
synthesis of new knowledge
Highly sophisticated and
creative analysis, synthesis
of new with existing
knowledge.
5% Application and Recommendation
Limited application and
recommendations of
theories/models to answer
the questions in the report.
Some application and
recommendations of
theories/models to
answer the questions in
the report.
Well-developed application
and recommendations of
theories/models to answer
the questions in the report.
Thoroughly developed
application of pretested
and / or independently
developed theories/models.
Justified recommendations
linked to analysis/synthesis.
Strong application
pretested and
independently developed
theories/models.
Recommendations are
clearly justified based on
the analysis/synthesis.
Effective
Communication
(Written)
15%
The work demonstrated little
understanding or
appreciation of standards
required for academic
writing. Improvements in
terms of clarity, grammar,
spelling or presentation were
required to achieve an
acceptable standard.
Poor report writing and
layout.
The work was presented
with sufficient coherence
and clarity for the reader
tounderstand the ideas
and arguments being
proposed. Improvements
to writing such as
structureand grammar
were required to meet
academic writing
standards.
Functional report writing
skills.
The work was written and
presented in a satisfactory
manner and the writing was
clear, grammatically correct
and accurate in terms of
spelling.
Proficient report writing
skills.
The work was written and
presented to a very high
academic standard.
Advanced report writing
skills.
The work was written and
presented to an exemplary
academic standard.
Exceptional report writing
skills.
ECO601_Assessment 3 Brief Case Analysis Module 5 Page 7 of 8
Evaluation of
information selected to
support the case
analysis
10%
5% Use of sources
Confuses logic and emotion.
Information taken from
reliable sources but without
a coherent analysis or
synthesis.
Often conflates/confuses
assertion of personal
opinion with information
substantiated by evidence
from the research/course
materials.
Supports personal opinion
and information
substantiated by evidence
from the research/course
materials.
Well demonstrated capacity
to explain and apply
relevant concepts.
Information is taken from
sources with a high level of
interpretation/evaluation
to develop a
comprehensive critical
analysis or synthesis.
5% Critical reflection of sources
Viewpoints of experts are
taken as fact with little
questioning.
Analysis and evaluation do
not reflect expert
judgement, intellectual
independence, rigor and
adaptability.
Identifies logical flaws and
critically reflects on
viewpoints of experts.
Distinguishes between
assertion of personal
opinion and information
substantiated by robust
evidence from the
research/course materials
and extended reading.
Analysis and evaluation
reflect growing judgement,
intellectual independence,
rigor and adaptability.
Systematically and critically
distinguishes between
assertion of personal
opinion and information
substantiated by robust
evidence from the
research/course materials
and extended reading.
Exhibits intellectual
independence, rigor, good
judgement and
adaptability.
Team Work
5%
Does not participate
effectively in a team
environment for search of
information, group
discussion and writing
assigned tasks.
Hinders the group process
and upsets the schedule.
Participates effectively in
teams and supports the
team.
Contributes to small group
discussions to reach
agreement on issues.
Works together with others
towards shared goals.
Renegotiates responsibilities
to meet needed change.
Understands group
dynamics and team roles
and facilitates team
development.
Builds team’s identity and
commitment by leading
and evaluating team’s
outcomes.
Implements strategies for
enhancing team
effectiveness.
ECO601_Assessment 3 Brief Case Analysis Module 5 Page 8 of 8
Correct citation of key
resources and evidence
5%
2.5% Quality of sources
Demonstrates
inconsistent use of good
quality, credible and
relevant resources to
support and develop
ideas.
Demonstrates use of credible
and relevant resources to
support and develop ideas,
but these are not always
explicit or well developed.
Demonstrates use of
credible resources to
support and develop ideas.
Demonstrates use of good
quality, credible and
relevant resources to
support and develop
arguments and statements.
Demonstrates use of highquality, credible and
relevant resources to
support and develop
arguments and position
statements.
2.5% Referencing
Referencing is omitted or
does not resemble APA 7th
Edition.
Referencing resembles APA
7
th Edition, with frequent or
repeated errors.
Referencing resembles APA
7
th Edition, with occasional
errors.
APA 7th Edition referencing
is almost free from errors.
APA 7th Edition referencing
is free from errors.