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Unit of study_

ECON6903: Topics in Bus. Cycles and Monetary Policy

This unit is designed to provide an understanding of selected topics at the frontier of academic research in the area of advanced macroeconomics, focusing on business cycles and monetary policy. We will spend the first half of the course developing essential tools used in macroeconomics and studying canonical micro-founded rational expectations general equilibrium models, originated from the real business cycles literature. The rest of the course will focus on nominal frictions within a New Keynesian/New Neoclassical framework and their implications for monetary policy. We will also discuss the merits and the shortcomings of these models and examine how these failings have been addressed in the literature. A central aim of this unit of study is to enable students to undertake further theoretical or empirical research in the area of business cycles and monetary policy.


Academic unit Economics
Unit code ECON6903
Unit name Topics in Bus. Cycles and Monetary Policy
Session, year
Semester 1, 2022
Attendance mode Normal day
Location Remote
Credit points 6

Enrolment rules

(ECON6001 or ECON6701) and (ECON6002 or ECON6702) and (ECON6003 or ECON6703) and (ECMT6002 or ECMT6702)
Available to study abroad and exchange students


Teaching staff and contact details

Coordinator Mariano Kulish,
Type Description Weight Due Length
Final exam (Take-home extended release) Type E final exam Final exam
Take home exam
60% Formal exam period 24 hours
Outcomes assessed: LO1 LO4 LO3 LO2
Assignment Midterm exam
Take home exam to be released on 12/04/22 at 10AM
40% Week 08
Due date: 13 Apr 2022 at 10:00
24 hours
Outcomes assessed: LO1 LO2 LO3 LO4
Type E final exam = Type E final exam ?

Detailed information for each assessment can be found on Canvas.

Assessment criteria

The University awards common result grades, set out in the Coursework Policy 2014 (Schedule 1).

As a general guide, a High distinction indicates work of an exceptional standard, a Distinction a very high standard, a credit a good standard, and a pass an acceptable standard.

Result name

Mark range


High distinction

85 - 100



75 - 84



65 - 74



50 - 64



0 - 49

When you don’t meet the learning outcomes of the unit to a satisfactory standard.

For more information see

Late submission

In accordance with University policy, these penalties apply when written work is submitted after 11:59pm on the due date:

  • Deduction of 5% of the maximum mark for each calendar day after the due date.
  • After ten calendar days late, a mark of zero will be awarded.

Special consideration

If you experience short-term circumstances beyond your control, such as illness, injury or misadventure or if you have essential commitments which impact your preparation or performance in an assessment, you may be eligible for special consideration or special arrangements.

Academic integrity

The Current Student website provides information on academic honesty, academic dishonesty, and the resources available to all students.

The University expects students and staff to act ethically and honestly and will treat all allegations of academic dishonesty or plagiarism seriously.

We use similarity detection software to detect potential instances of plagiarism or other forms of academic dishonesty. If such matches indicate evidence of plagiarism or other forms of dishonesty, your teacher is required to report your work for further investigation.

WK Topic Learning activity Learning outcomes
Week 01 Introduction - empirical evidence Seminar (3 hr)  
Week 02 Neoclassical growth model Seminar (3 hr)  
Week 03 Stochastic growth model Seminar (3 hr)  
Week 04 Stochastic Growth Model II Seminar (3 hr)  
Week 05 Classical Monetary Model Seminar (3 hr)  
Week 06 Classical Monetary Model II Seminar (3 hr)  
Week 07 A Basic NK model Seminar (3 hr)  
Week 09 A Basic NK model II Seminar (3 hr)  
Week 10 Monetary Policy Design Seminar (3 hr)  
Week 11 Monetary policy in an open economy Seminar (3 hr)  
Week 12 An Incomplete Markets Model Seminar (3 hr)  
Week 13 Unconventional Monetary Policy / Review Seminar (3 hr)  

Attendance and class requirements

  • Attendance: According to Faculty Board Resolutions, students in the Faculty of Arts and Social Sciences are expected to attend 90% of their classes. If you attend less than 50% of classes, regardless of the reasons, you may be referred to the Examiner’s Board. The Examiner’s Board will decide whether you should pass or fail the unit of study if your attendance falls below this threshold.
  • Lecture recording: Most lectures (in recording-equipped venues) will be recorded and may be made available to students on the LMS. However, you should not rely on lecture recording to substitute your classroom learning experience.
  • Preparation: Students should commit to spend approximately three hours’ preparation time (reading, studying, homework, essays, etc.) for every hour of scheduled instruction.

Study commitment

Typically, there is a minimum expectation of 1.5-2 hours of student effort per week per credit point for units of study offered over a full semester. For a 6 credit point unit, this equates to roughly 120-150 hours of student effort in total.

Required readings

All readings for this unit can be accessed on the Library eReserve link available on Canvas.

Textbook: Gali, Jordi, (2015) Monetary Policy, Inflation, and the Business Cycle: An Introduction to the New Keynesian Framework, Second Edition, Princeton University Press. [G]

Learning outcomes are what students know, understand and are able to do on completion of a unit of study. They are aligned with the University’s graduate qualities and are assessed as part of the curriculum.

At the completion of this unit, you should be able to:

  • LO1. apply macroeconomic theory to the analysis of current events, data and policy
  • LO2. identify, access and use materials provided online; analyse data provided by lecturer
  • LO3. communicate concepts, both orally and in writing, to a professional standard
  • LO4. demonstrate ability to plan and achieve goals; use materials provided by lecturer to prepare and revise.

Graduate qualities

The graduate qualities are the qualities and skills that all University of Sydney graduates must demonstrate on successful completion of an award course. As a future Sydney graduate, the set of qualities have been designed to equip you for the contemporary world.

GQ1 Depth of disciplinary expertise

Deep disciplinary expertise is the ability to integrate and rigorously apply knowledge, understanding and skills of a recognised discipline defined by scholarly activity, as well as familiarity with evolving practice of the discipline.

GQ2 Critical thinking and problem solving

Critical thinking and problem solving are the questioning of ideas, evidence and assumptions in order to propose and evaluate hypotheses or alternative arguments before formulating a conclusion or a solution to an identified problem.

GQ3 Oral and written communication

Effective communication, in both oral and written form, is the clear exchange of meaning in a manner that is appropriate to audience and context.

GQ4 Information and digital literacy

Information and digital literacy is the ability to locate, interpret, evaluate, manage, adapt, integrate, create and convey information using appropriate resources, tools and strategies.

GQ5 Inventiveness

Generating novel ideas and solutions.

GQ6 Cultural competence

Cultural Competence is the ability to actively, ethically, respectfully, and successfully engage across and between cultures. In the Australian context, this includes and celebrates Aboriginal and Torres Strait Islander cultures, knowledge systems, and a mature understanding of contemporary issues.

GQ7 Interdisciplinary effectiveness

Interdisciplinary effectiveness is the integration and synthesis of multiple viewpoints and practices, working effectively across disciplinary boundaries.

GQ8 Integrated professional, ethical, and personal identity

An integrated professional, ethical and personal identity is understanding the interaction between one’s personal and professional selves in an ethical context.

GQ9 Influence

Engaging others in a process, idea or vision.

Outcome map

Learning outcomes Graduate qualities
No changes have been made since this unit was last offered


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