International Monetary Economy

2021/5/8 Assessment 2A (2): Final Executive summary report and appendices - Group Assessment here

https://rmit.instructure.com/courses/77545/assignments/553639 1/6

Assessment 2A (2): Final Executive summary report and appendices -

Group Assessment here

Due 16 May by 23:59 Points 15 Submitting a file upload Available 1 Mar at 0:00 - 30 Jun at 23:59 4 months

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IMPORTANT:

You only need to submit one Assessment for your whole group. 

Turnitin similarity index will be checked for specific similarity eg other submissions, segments of texts from others sources. The summary report should be drafted in your own words. 

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Unit code and name: ECON1082 International Monetary Economics

Assessment name: Assessment 2A (2):  Executive Summary Report 

Weight: 15%  

Assignment due date : May 16 - Final Executive Summary and Appendices 

Length:  Executive summary (1400-1500 words) and appendix. (Note: the appendix is not included in the word count - this should show the comprehensive research completed relevant to the various course topics and tasks) 

Submission: In addition to the final report students need to submit the following information as an appendix. 

-The topic specific research (as per tasks below) - this will include the research submitted for review in step one which should incorporate any feedback received in step one.   RMIT Cover Sheet  - signed by all members 

PLEASE NOTE THAT WHEN CHOOSING A COUNTRY YOU CAN CHOOSE ANY COUNTRY BUT AUSTRALIA

Feedback mode: via Canvas

Learning Objectives Assessed:

CLOs 1  to 5 

1. Analyse the concept of a nation’s balance of payments to examine the economic importance of changes in a nation’s net foreign wealth position.

2. Synthesize and evaluate theories of exchange rate determination. 3. Assess the policy options available in an open macroeconomic environment. 4. Evaluate the extent to which macroeconomic policy effectiveness is affected by macroeconomic openness. 5. Assess the implications of a government’s choice between a fixed and a floating exchange rate regime

You will apply research and critical thinking skills to inform strategic approaches, solutions and options

Graduate Outcomes supported: 

This assessment supports the following graduate outcomes.

1) Work ready

2) Global in outlook

3) Innovative

4) Life-long learner

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2021/5/8 Assessment 2A (2): Final Executive summary report and appendices - Group Assessment here

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Assessment Details: 

Executive Summary Report

“The King Centre of International Economics  (KCIE)is an economic consultancy that provides independent, quantitative, evidence- based advice to support practical decision-making. Our work is about applying the tools and techniques of economic analysis to help solve problems for our government, private, non-government, and international clients. We work across all sectors and have built a reputation for analysing difficult and complex economic issues, and producing well researched, comprehensive and credible economic assessments. We are proud to make available a wide range of our reports, which are published on our website and available upon request. We have worked in both developed and  developing countries in Asia, Africa,  Europe, Latin  and Northern America and the Pacific, advising on economic policy and institutional development across a diverse range of subjects". 

Our international  work varies however recent work has included the impact of the government and central bank policies to support the macroeconomy during the pandemic crisis. The analysis we provide   focuses on assessment of the  clients domestic market and their interaction and exposure to  international  markets and key trading partners.  Assessment of expectations regarding relative interest rates, the value of the domestic currency, commodity markets and expected policy directions are also provided

Task: You are graduate employee at  "KCIE" research and you have been allocated to a team asked to provide some current research on a client market  in a country of your choice.  (This can be any major economy in the world for which you can access information for key economy variables) .The audience for the research and the executive summary is the manager of the regional "country" division you have chosen to study, and will be passed on to the client (large company considering expanding operations in your country of choice)  once reviewed by your manager. 

The task is to apply the  economic models covered in class to help the client understand the current economy in the country of choice and the likely implications of changing trade patterns, policy developments and political sentiment towards  globalisation.  Your team are expected to conceptually model  likely changes in key economic variables  with a specific focus on international flows in trade and capital and the mechanisms that drive these flows. You may also choose to explore the development of the digital economy in these countries and explore how the rate of growth of decentralised ledger technologies might impact trade flows across sectors.  As a group you will  be expected to apply the tools developed in the course content to  develop an assessment  the current situation and likely development of your economies macroeconomy.  Your assessment of the international  macroeconomic conditions of your market will support the client by ;-

Helping clients to:

Be better equipped to make the right strategic business decisions Plan more effectively when entering new markets Understand the bigger picture when making investment appraisals Be better prepared for policy or regulatory change Influence policy-makers, officials, regulators, customers or the public with greater authority

You are required to develop a research strategy supported by the set of tasks listed below.

Drawing on that research you are then required to draft an Executive summary report (1400-1500 words) highlighting the key points of your findings and  providing an assessment of expectations regarding relative interest rates, the value of the domestic currency, commodity markets, the digital economy and expected policy directions. 

For example, Why can theory  tell us about recent changes in exchange rates ?, what is the role of monetary and fiscal policy ?and implications for internal and external balance, domestic saving and consumption practices and what this means for the balance of payments? etc... 

The following tasks provide some guidelines to support your research . 

suggested tasks are:-

Task 1 

Form groups (max 5 - minimum 2) in your tutorial class and update details on Canvas.  Identify groups interests and capabilities  Set up a shared group within microsoft teams Choose the country / region you would like to research Consider recent events and complete an initial library desktop review  (Literature search) on the specific region and country 

Task 2

2021/5/8 Assessment 2A (2): Final Executive summary report and appendices - Group Assessment here

https://rmit.instructure.com/courses/77545/assignments/553639 3/6

Begin to identify data sources (most recent available - refer to national statistics websites)  and collate information on trends in  the following variables  referred to in the course materials some examples may be :-  Unemployment rate CoVid 19 data Inflation rates Interest rates Interest rates of trading partners Real GDP growth  Balance of payments (current account balance) Net Debt - as per International investment position

Task 3

Applying and contextualising the data collated in the previous week assess:-

Provide an assessment of the countries current account balance? What does this imply about trading consumption across time. what is the economic significance of the Current account balance  and how does that relate to the International Investment position Can you deduce anything about preferences for current / future consumption What can you determine from (real) interest rates on the return on domestic investment relative to foreign investment. Does capital flow in the direction predicted by the intertemporal model of the current account? Why/ why not? Have there been any changes in trading patterns recently Have there been any significant change in the digital economy - Has the central bank made reference to use of digital currencies ?

Task 4

Consider the exchange rate: is it a flexible or managed exchange rate mechanism? and what are driving recent trends in exchange rates ? The big mac index – is the markets currency considered under or over-valued according to PPP Does the economy have a well developed financial market - is there a high degree of capital mobility across borders? Trade in goods and services (how dependent is the economy on international trade in goods and services)? What is the role of the central bank in inlfuencing exchange rates (direct or indirect) Are there controls on capital flows in and out of the country - Could this be impacted by the use of Cryptocurrencies ? If the exchange rate is flexible how volatile have fluctuations being  - could volatility be explained by any of the theories of exchange rate determination

Task 5

Is the trade balance sensitive to changes in foreign prices for imports and exports Estimate which quadrant of the SWAN diagram your country of choice may be operating in? What might that predict about the role for policymakers What drives the RER - is it changes in the price of Non tradeables or the nominal exchange rate What does the RER suggest about the countiries competitiveness

 

Task 6

Assess possible events that might affect these markets. Use the IS LM BP model to frame your analysis:-What if:

There was either expansionary fiscal or monetary policy What if relative interest rate rise (fall) What if social and political concerns impact trade

 

Task 7

How exposed is the market to external shocks (e.g trade flows / NX) How exposed is the economy to internal shocks (eg. fluctuations in demand for money / regional shocks ) Specify the exchange rate regime and analyse the risks inherent in that exchange rate regime What type of policy interventions are likely given the country context - Monetary? / Fiscal? 

Task 8

2021/5/8 Assessment 2A (2): Final Executive summary report and appendices - Group Assessment here

https://rmit.instructure.com/courses/77545/assignments/553639 4/6

Assessment 2A 2020: Executive Summary Report (1) (1)

Draft and submit the executive summary drawing on the groups research - keep in mind writing style  (https://emedia.rmit.edu.au/learninglab/content/writing-skills)

Some tips on report writing   (https://emedia.rmit.edu.au/learninglab/content/writing-report-0)

As the assessment is the executive summary  (https://emedia.rmit.edu.au/learninglab/content/report-sample-executive-summary- description) keep it succinct but informative. The group will need to collaborate on the key messages from their research in the "appendix" that would add value to the manager of your section. For example

The purpose of the report - define the report objective (e.g identify recent changes in key variables and apply theory to understand expected future changes )  The results of the research - key findings - refer to appendix to provide supporting information / analysis The conclusions drawn from the research - identification of key risks etc.  Recommendations for clients operating in that markets - likely macroeconomic trends etc .. 

RMIT Electronic Submission of work for assessment

I declare that in submitting all work for this assessment I have read, understood and agree to the content and expectations of the Assessment declaration (https://www.rmit.edu.au/students/student-essentials/assessment-and-exams/assessment/assessment- declaration)

2021/5/8 Assessment 2A (2): Final Executive summary report and appendices - Group Assessment here

https://rmit.instructure.com/courses/77545/assignments/553639 5/6

Criteria Ratings Pts

8 pts

5 pts

Application of course Theory Demonstrated application of course specific economic theories and concepts to contemporary issues in a given market, as well as formulation and analysis of policy Assigned tasks have contributed to deeper thinking and critical assessment of current international economic contexts and trade flows

8 to >6.4 Pts Exemplary

Conveys strong evidence of understanding of course theory and its implications. Demonstrates significant awareness of connections in the course topics through inferences made, examples, well developed insights, and substantial critical analysis. Synthesizes current experience into future implications and recommendations to minimize macroeconomic risks

6.4 to >5.6 Pts D

Conveys evidence of engagement and understanding of course theory. Cohesive narrative. Good synopsis of current economic situation of the given market, possible implications and future risks and (policy) recommendations that may be likely or relevant

5.6 to >4.8 Pts C

Conveys limited evidence of engagement and understanding of course materials. Minimal thought of the implications of current experience.

4.8 to >4.0 Pts P

Inconsistent analysis - contradictions in assessment of the country specific data evident. There is limited evidence of engagement and understanding of course materials - no consolidated narrative presented. Minimal thought of the implications of current experience.

4 to >0 Pts Unsatisfactory

Conveys inadequate evidence of engagement and understanding of course theory. Lacks any inferences, examples and future implications are overlooked.

Executive Summary Structure and Presentation • Purpose / subject matter • Method • Results • Conclusions • Recommendations Communicate findings effectively : Writing style

5 to >4.0 Pts Exemplary

Well structured. Well written and clearly organized using standard English, characterized by elements of a strong writing style and basically free from grammar, punctuation, usage, and spelling errors.

4 to >3.5 Pts D

Good Structure Above average writing style and logically organized using standard English with minor errors in grammar, punctuation, usage, and spelling.

3.5 to >3.0 Pts C

Some structure - some repetition of information in places. Average and/or casual writing style that is sometimes unclear and/or with some errors in grammar, punctuation, usage, and spelling

3 to >2.5 Pts P

Little structure Average and/or casual writing style that is sometimes unclear and/or with some errors in grammar, punctuation, usage, and spelling

2.5 to >0 Pts Unsatisfactory

No clear structure Poor writing style lacking in standard English, clarity, language used, and/or frequent errors in grammar, punctuation, usage, and spelling. Needs work.

2021/5/8 Assessment 2A (2): Final Executive summary report and appendices - Group Assessment here

https://rmit.instructure.com/courses/77545/assignments/553639 6/6

Total points: 15

Criteria Ratings Pts

2 pts

Appendices Appendices illustrate consistent and relevant research across all topics Turnitin similarity report submitted Statement of participation submitted

2 to >1.0 Pts Full marks

1 to >0.5 Pts C

0.5 to >0 Pts No marks