MC Economics Reserve Bank of New Zealand Essay

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ASSESSMENT ITEM 3: MEDIA ARTICLE
Aligned subject learning
outcomes
• Identify and apply the characteristics of economic thought and theory
• Examine the practical relevance of economics and apply to current microeconomic and
macroeconomic contexts
Group or individual
Individual assessment item
Weighting
35%
Due date
11pm Singapore time Friday 28th Jan 2022 (week 11)
ASSESSMENT ITEM 3: DESCRIPTION
The aim of this assessment is for you to apply foundational macroeconomic concepts and theory learned
in weeks 6-10 and analyse macroeconomic data to make an informed judgement on the future actions of
the Reserve Bank of New Zealand.
You have been invited as a guest expert to write a commentary column for Financial Times. As the author
of this media article, you are to write from the point of view of an economist, communicating the contents
included within the article to the general public. This will include households and businesses.
Step 1: Explore readings related to macroeconomic concepts covered within weeks 6 to 10 of our subject.
Step 2: Research real data on economic indicators such as those identified below. Display these indicators
within a summary table. The word content within this table will not be included. A good starting resource
to locate such data is:
https://www.rbnz.govt.nz/statistics
o Gross Domestic Product growth rate
o Unemployment Rate
o Inflation Rate
o Consumer/business confidence measures (e.g. Lending indicators, retail activity)
Step 3: There is speculation that the Reserve Bank of New Zealand will be tightening the monetary policy
by increasing interest rate. Analyse the transmission effects from this monetary policy action on the
interest rate. Analytical frameworks which examine these effects are desirable and are to be included
within an appendix. Please ensure these are clearly labelled with headings and referred to within the body
of the Media Article.
Step 4:
Based on your analysis from step 3 and the current economic climate revealed within step 2, evaluate
whether the Reserve Bank of New Zealand increase, decrease or leave the same Interest Rate, given its
three important concerns of controlling inflation, maximising employment and supporting economic
wellbeing. Please explain why for your opinion based on your evaluations.
Step 5: Present your findings from steps 2, 3 and 4 into a Media Article of 1000 words maximum including
in-text citations (see Tips for writing a press release for some guidance). Include a reference list and an
appendix which presents your analytical frameworks (word count excluded).
Specifically:
•
Provide a title of the Media Article in Bold which captures the essence of the article along with a
date.
•
Write a concise summary paragraph. This should be no more than four sentences (approximately
100 words) to give the audience an overview of what is included within the press release.
•
Introduction to hook in the reader (approx. 50 words)
•
Develop the body of the article (approx. 600 words). There should be three main sections which
include:
o Anticipated effects of an increase of the Interest Rate based on the economic indicators
observed within step 2.
o A statement based on your evaluation whether the Reserve Bank of New Zealand should
increase, decrease or leave the same Interest Rate. Clearly justify why, drawing
connections from your summary table of economic indicators. Further, link your
commentary to Reserve Bank of New Zealand’ concerns of controlling inflation, maximising
employment and supporting economic wellbeing.
o Write a succinct closing paragraph. This should be no more than four sentences
(approximately 50 words).
•
Provide a reference list in APA format. These will not contribute towards word count. For help on
how to reference go to https://libguides.jcu.edu.au/apa
Step 6: You are to submit a single file to LearnJCU Assessment 3 dropbox.
The single file should include: (1) A Media Article with a reference list and (2) An appendix which presents
any graphs and analytical demand and supply frameworks. Please ensure these are labelled and referred
to where relevant within the body of the Media Article.
ASSESSMENT ITEM 3: CRITERIA (OR RUBRIC)
You will be assessed on your ability to:
1. Explain relevant macroeconomic concepts and analyse economic data in insightful way (20 marks)
2. Incoporate findings or advice from information sources and economic indicators into your argument (20
marks)
3. Analyse data and synthesise information to determine meaning (20 marks)
4. Construct a clear and logical argument (20 marks)
5. Communicate and present your argument in an effective and engaging way (20 marks)
Criterion
1.Knowledge, Understanding
& Interpretation
SLO1. SLO2. SLO3. CLO2,
CLO6
2.Research Skills
SLO1. SLO2. SLO3. CLO2,
CLO6
•
•
•
•
•
•
N
Limited understanding of
required macroeconomic
concepts and knowledge.
Inaccurately provided
meaning to data sourced and
made irrelevant inferences
from data.
Draws upon information and
data that is irrelevant,
unreliable and/or lacks
currency.
Argument lacks support with
insufficient reference to the
research undertaken.
No reference list.
Incorrect use of APA style.
•
•
•
•
•
3.Analysis
SLO1. SLO2. SLO3. CLO2,
CLO6
4.Clear and logical argument
CLO7
•
•
•
•
•
•
Inaccurately interpret
information.
Very limited analysis and
synthesis of contentprovided
characterised by lack of
evalutation.
•
Media Article is difficult to
understand and follow.
Lacks structure and planning.
Inaccurately connected or
integrated information to
reach a conclusion.
Poor argument or not evident.
•
•
•
P
Exhibits some
understanding of
macroeconomic
concepts.
Provided some
meaning to data
sourced and made
inferences from data
with some errors.
Draws upon some
relevant selection of
information and data
from reputable
sources.
Research supports
the argument and is
generally supported
with reference to the
research undertaken.
Reference list
contains most
references correctly
cited and listed in
APA style.
Able to interpret some
information to
determine meaning.
Basic analysis and
synthesis of content
provided
characterised by little
use of evaluation.
Media Article has a
logical flow and can
be followed with some
effort.
Connected or
integrated information
to reach a conclusion
with quite some
errors.
•
•
•
•
•
•
•
•
•
•
C
Exhibits breadth and depth
of understanding of
macroeconomic concepts.
Provided meaning to data
sourced and made
inferences from data with
some errors.
•
•
Draws upon relevant
selection of accurate
information and data from
reputable sources.
Research sufficiently
supports the argument and
is well supported with
reference to the research
undertaken.
Reference list contains most
references correctly cited
and listed in APA style.
•
Able to interpret information
to determine meaning.
Basic analysis and
synthesis of content
provided characterised by
occasional use of
evaluation.
•
Media Article has a logical
flow and can be followed
with some minor effort.
Accurately connected or
integrated information to
reach a conclusion with
some error.
Overall quality of argument
is fair to good.
•
•
•
•
•
•
D
Exhibits accurate and
breadth and depth of
understanding of
macroeconomic concepts.
Properly provided
meaning to data sourced
and made relevant
inferences from data.
•
•
Draws upon relevant
selection of accurate
information and data from
reputable sources.
The argument presented
is coherent and well
supported with reference
to a breadth of research.
Reference list contains all
references cited and listed
in correct APA style.
•
Able to accurately
interpret information to
determine meaning.
Discriminating and
convincing analysis and
synthesis of content
provided.
•
Media Article is logical,
clear and coherent
making following it easy.
Accurately connected or
integrated information to
reach a conclusion with
minor error.
Overall quality of
argument is great.
•
•
•
•
•
•
HD
Exhibits accurate and
elaborated breadth and
depth of understanding of
macroeconomic concepts.
Accurately provided
meaning to data sourced
and made relevant
inferences from data.
Draws upon highly
relevant selection of
accurate information and
data from reputable
sources.
The argument presented
is coherent and well
supported with reference
to a breadth of research.
Reference list contains all
references cited and listed
in correct APA style.
Able to accurately
interpret information to
determine meaning.
Highly discriminating and
convincing analysis and
synthesis of content
provided.
Media Article is logical,
clear and coherent
making following it easy.
Accurately connected or
integrated information to
reach a conclusion.
Overall quality of
argument is excellent.
Criterion
N
•
5.Communication
Skills
CLO7
•
•
•
•
Has difficulty conveying
meaning to intended
audience due to inappropriate
language and lack of
sequencing and explanatory
techniques.
Lacks structure and planning.
Utilises support materials with
inaccurately presented and
referenced content (i.e. intext citations) and little
attention to design.
Media Article is longer than
1000 words or much shorter.
•
•
•
•
P
Overall quality of
argument is
acceptable.
Able to convey
meaning to intended
audience with some
clarity using
appropriate language
and effective
sequencing and
explanatory
techniques.
Media Article has an
overview paragraph,
introduction, body and
conclusion, reference
list and appendix.
Utilises support
materials wherein
content is presented
and referenced albeit
with quite some errors
(i.e. in-text citations).
Media Article is 1000
words maximum.
C
•
•
•
•
Able to convey meaning to
intended audience with
clarity using appropriate
language and effective
sequencing and explanatory
techniques.
Media Article has an
overview paragraph,
introduction, body and
conclusion, reference list
and appendix.
Utilises support materials
wherein content is
presented and referenced
albeit with some errors (i.e.
in-text citations).
Media Article is 1000 words
maximum.
D
•
•
•
•
Able to convey meaning
to intended audience with
clarity using appropriate
language and effective
sequencing and
explanatory techniques.
Media Article has an
overview paragraph,
introduction, body and
conclusion, reference list
and appendix.
Utlises well-designed
support materials with
accurately presented and
referenced content (i.e. intext citations).
Media Article is 1000
words maximum
HD
•
•
•
•
Able to convey meaning
to intended audience with
high level of clarity using
appropriate language and
highly effective
sequencing and
explanatory techniques.
Media Article has an
overview paragraph,
introduction, body and
conclusion, reference list
and appendix.
Utlises well-designed
support materials with
accurately presented and
referenced content (i.e. intext citations).
Media Article is 1000
words maximum
Tutorial – Guidance on assessment 3
Using a similar topic.
Please note, your actual topic is about New Zealand, available in LearnJCU assessment 3
Instructor to go through Pages 2 – 17 in week 10 tutorial
Prepare you for Assessment 3: Practice
The Fed moved quickly as the Covid-19 pandemic began in the United States in
March of last year, slashing its benchmark lending rate to zero and stepping up asset
purchases to inject liquidity into the economy.
The steps, together with trillions of dollars in stimulus spending approved by
Congress, have been credited with keeping the world’s largest economy from a
worse downturn.
But the central bank’s pledge to keep rates lower for longer has sparked fears the
Fed will allow inflation to get out of hand.
They plan to hold off on raising the policy lending until inflation passes 2.0 percent
and stays there for some time.
Should US Fed increase interest rate?
Real GDP: https://www.bea.gov/data/gdp/gross-domestic-product
2019
Q1
Gross domestic product 2.9
Q2
1.5
2020
Q3
2.6
Q4
2.4
Q1
-5
Q2
-31.4
Real GDP declined from 2020 Quarter 1 (growth rate: -5% in Q1 and -31.4% in Q2).
What does it tell us and why?
From 2019, the economy started to shrink due to Covid outbreak
From 2020 Q3, Real GDP started to increase.
What can you find from the following breakdown expenditure of GDP?
Q3
33.4
Q4
4.3
2021
Q1
6.4
2019
Gross domestic product
Personal consumption
expenditures
Goods
Durable goods
Nondurable goods
Services
Gross private domestic
investment
Fixed investment
Nonresidential
Structures
Equipment
Intellectual property
products
Residential
Net exports of goods and
services
Exports
Goods
Services
Imports
Goods
Services
Government consumption
expenditures and gross
investment
Federal
National defense
2020
Q1
2.9
Q2
1.5
Q3
2.6
Q4
2.4
Q1
-5
Q2
-31.4
Q3
33.4
Q4
4.3
2021
Q1
6.4
1.8
3.7
2.7
1.6
-6.9
-33.2
41
2.3
10.7
2.5
1
3.3
1.5
7.7
12.7
5.3
1.9
4.2
6.3
3.1
2
0.6
3.1
-0.7
2
0.1
-12.5
7.1
-9.8
-10.8
-1.7
-15
-41.8
47.2
82.7
31.1
38
-1.4
-1.1
-1.6
4.3
23.6
41.4
14.4
4.6
3.9
-5.8
1.8
-3.7
-9
-46.6
86.3
27.8
-5
2.9
4.2
8.2
2
-0.4
0
1.6
-3.8
2.4
1.9
3.6
-1.7
1
-0.3
-5.3
-1.7
-1.4
-6.7
-3.7
-15.2
-29.2
-27.2
-33.6
-35.9
31.3
22.9
-17.4
68.2
18.6
13.1
-6.2
25.4
10.1
9.9
-4.8
16.7
4.5
4.1
5.3
4.6
2.4
-11.4
8.4
10.5
10.1
-1.7
-2.1
4.6
5.8
19
-35.6
63
36.6
10.8
—
—
—
—
—
—
—
—
—
1.8
3.9
-2
-2.1
-2.7
0.6
-4.5
-9.1
4.9
1.7
0.1
9
0.8
3.1
-3.2
0.5
0.7
-0.7
3.4
2.5
5.1
-7.5
-9.4
0.9
-9.5
-2.7
-20.8
-15
-11.4
-28.5
-64.4
-66.8
-59.6
-54.1
-49.6
-69.9
59.6
104.3
-0.5
93.1
110.2
24.9
22.3
31.1
5.2
29.8
31
23.8
-1.1
-0.9
-1.5
5.7
5.5
6.5
2.5
5
2.1
2.4
1.3
2.5
-4.8
-0.8
6.3
1.3
5.6
9.2
4.4
4.8
5.6
4
6.6
1.6
-0.3
16.4
3.8
-6.2
3.2
-0.9
4.8
13.9
-3.4
CPI:
https://tradingeconomics.com/unitedstates/inflation-cpi
• What can you infer
from the data?
CPI
• https://www.bls.gov/charts/con
sumer-price-index/consumerprice-index-by-category.htm
• What can you infer from the
data?
12-month percent change, Apr 2021
All items
Food
Food at home
Cereals and bakery products
Meats, poultry, fish, and eggs
Dairy and related products
Fruits and vegetables
Nonalcoholic beverages and beverage
materials
Other food at home
Food away from home
Full service meals and snacks
Limited service meals and snacks
Energy
Energy commodities
Fuel oil
Gasoline (all types)
Energy services
Electricity
Natural gas (piped)
All items less food and energy
Commodities less food and energy
commodities
Apparel
New vehicles
Used cars and trucks
Medical care commodities
Alcoholic beverages
Tobacco and smoking products
Services less energy services
Shelter
Rent of primary residence
Owners’ equivalent rent of residences
Medical care services
Physicians’ services
Hospital services
Transportation services
4.2%
2.4%
1.2%
0.1%
2.0%
0.6%
3.3%
0.2%
0.4%
3.8%
3.7%
6.2%
25.1%
47.9%
37.3%
49.6%
5.4%
3.6%
12.1%
3.0%
4.4%
1.9%
2.0%
21.0%
-1.7%
1.9%
6.8%
2.5%
2.1%
1.8%
2.0%
2.2%
4.9%
2.5%
5.6%
Unemployment
rate:
https://www.bls.gov/charts/employmentsituation/civilian-unemployment-rate.htm
What can you infer from
the data?
Month
Jan-19
Feb-19
Mar-19
Apr-19
May-19
Jun-19
Jul-19
Aug-19
Sep-19
Oct-19
Nov-19
Dec-19
Jan-20
Feb-20
Mar-20
Apr-20
May-20
Jun-20
Jul-20
Aug-20
Sep-20
Oct-20
Nov-20
Dec-20
Jan-21
Feb-21
Mar-21
Apr-21
Total
4
3.8
3.8
3.7
3.7
3.6
3.6
3.7
3.5
3.6
3.6
3.6
3.5
3.5
4.4
14.8
13.3
11.1
10.2
8.4
7.8
6.9
6.7
6.7
6.3
6.2
6
6.1
Men, 20 Women,
years and 20 years 16 to 19
over
and over years old
3.6
3.6
13.2
3.4
3.4
13.9
3.6
3.4
12.7
3.5
3.2
13.4
3.4
3.3
12.3
3.3
3.3
11.4
3.4
3.3
12
3.4
3.3
12.4
3.3
3
12.5
3.3
3.2
12.6
3.2
3.3
12.5
3.1
3.3
13
3.1
3.2
12.6
3.2
3.1
11.5
4.1
4
14.1
13.1
15.5
32.1
11.6
13.9
29.6
10.2
11.3
22.6
9.4
10.4
19.1
8
8.3
16.4
7.3
7.7
16.3
6.7
6.5
14
6.6
6.2
13.9
6.4
6.3
16
6
6
14.8
6
5.9
13.9
5.8
5.7
13
6.1
5.6
12.3
White
3.5
3.2
3.3
3.2
3.3
3.3
3.3
3.4
3.2
3.3
3.3
3.1
3
3
3.9
14.1
12.3
10.1
9.2
7.4
7
6
5.9
6
5.7
5.6
5.4
5.3
Black or
African
American
6.9
7
6.5
6.6
6.1
6
5.6
5.2
5.4
5.6
5.7
6.2
6.1
6
6.8
16.7
16.7
15.3
14.4
12.8
12
10.8
10.3
9.9
9.2
9.9
9.6
9.7
Asian
3
3.1
3.1
2.3
2.5
2.2
2.8
2.8
2.5
2.9
2.6
2.6
3.1
2.4
4.1
14.5
14.9
13.9
11.9
10.6
8.8
7.6
6.7
5.9
6.6
5.1
6
5.7
Hispanic
or Latino
4.8
4.3
4.5
4.1
4.1
4.3
4.4
4.2
4
4.2
4.3
4.3
4.3
4.4
6
18.9
17.6
14.5
12.7
10.5
10.3
8.8
8.4
9.3
8.6
8.5
7.9
7.9
What will be the impact should Fed increase
the interest rate?
The central bank
reduces the money
supply via open
market sales.
Lower supply of
loanable funds
increases interest
rates.
With higher interest
rates, investment falls,
shifting AD to the left.
Inflation rate reduces
• If US Fed increases the interest rate, price hiking will be slowed down.
However, higher interest rate will increase the borrowing cost of
businesses and consumers.
• As a result, business tend to demand less investment goods, such as
equipment, fixed investment, etc.
• Consumers’ spending on durable goods will also be deterred.
• These will reduce the production activities, which may cause an
increased unemployment.
A sample media article
• https://economictimes.indiatimes.com/markets/stocks/news/fed-setto-hold-interest-rates-as-us-economyrecovers/articleshow/82238927.cms
How to write a media
article?
Fed set to hold interest rates as US economy recovers
The Federal Reserve finally has what it wants and predicted: signs of a US economic
recovery that could undo some of the damage done by the Covid-19 pandemic. But
when the central bank’s policy-setting Federal Open Market Committee (FOMC)
opens its two-day meeting on Tuesday, analysts do not expect officials to raise rates
or otherwise signal any backing away from the easy money policies rolled out to aid
the US bounceback, despite some fears of rising inflation.
“No one is expecting any major policy changes in terms of rates or the Fed’s asset
purchases,” Andrew Hunter, senior US economist at Capital Economics, told AFP.
However, the central bank’s pledge to keep rates lower for longer has sparked fears
the Fed will allow inflation to get out of hand. Is it an appropriate policy of not
changing the interest rate?
Title of your article
A summary paragraph: An
overview of this press
release
Purchase answer to see full
attachment

Explanation & Answer:
1000 words

Tags:
economics

quarterly data

Reserve Bank of New Zealand

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