Victoria University of Wellington
Wellington, New Zealand
Area of Study
Taught In English
ECON 141 or 140
Course Level Recommendations
ISA offers course level recommendations in an effort to facilitate the determination of course levels by credential evaluators.We advice each institution to have their own credentials evaluator make the final decision regrading course levels.
Recommended U.S. Semester Credits3 - 4
Recommended U.S. Quarter Units4 - 6
Hours & Credits
Applications of an open economy macroeconomic model to macroeconomic issues and policy, including the interdependence of macroeconomic activity and markets, the roles of expectations variables and other dynamic adjustment mechanisms, the significance of international events, exchange rate regimes, inflation, unemployment.
ECON202 is an intermediate level open-economy macroeconomics course, which provides a more detailed consideration of some of the macroeconomic topics introduced in ECON140, together with additional material and perspectives. It features applications of an open economy macroeconomic model to macroeconomic issues and policy, including the interdependence of macroeconomic activity and markets, the roles of expectations variables and other dynamic adjustment mechanisms, and the significance of international events, exchange rate regimes, inflation, and unemployment. More detailed analyses of these and other dynamic issues are taken up in ECON305.
Course Learning Objectives
By the end of this course, students should be able to:
1. describe the interdependent nature of key macroeconomic variables and markets, and the dynamics of responses to economic shocks
2. analyse goods and financial market behaviour in the basic IS-LM model
3. explain the role of expectations variables in financial and goods markets
4. analyse how open economy financial and goods markets operate under fixed and flexible exchange rate regimes
5. analyse the supply side of a macro-economy: the labour market, wage setting and price determination, natural rates of unemployment
6. analyse the open-economy AD-AS model with natural output levels, and use it to explain the dynamics of responses to demand-side and supply-side shocks
7. explain modern open economy Phillips curves, inflation and unemployment tradeoffs, natural/potential economic growth rates, and their variations over time
8. assess the pros and cons of alternative exchange rate regimes, and explain how they provide different adjustment mechanisms for domestic and external economic shocks
9. analyse monetary and fiscal policies, and explain the conditions under which they should and should not be used
Tutorial Assignments 15%
Mid-course Test 15%
Final Exam (2 hours) 70%
Courses and course hours of instruction are subject to change.
Eligibility for courses may be subject to a placement exam and/or pre-requisites.
Some courses may require additional fees.
Credits earned vary according to the policies of the students' home institutions. According to ISA policy and possible visa requirements, students must maintain full-time enrollment status, as determined by their home institutions, for the duration of the program.
Please reference fall and spring course lists as not all courses are taught during both semesters.
Availability of courses is based on enrollment numbers. All students should seek pre-approval for alternate courses in the event of last minute class cancellations
Please note that some courses with locals have recommended prerequisite courses. It is the student's responsibility to consult any recommended prerequisites prior to enrolling in their course.