Question: Evaluating the International Macroeconomic context of Australia's 2020 economicperformance- current policy challenges and likely future directions. Is Australia well positioned to recover in 2021?

Apply knowledge developed from each course topic in your scenario analysis - for example the final piece of work needs to align with the ECON1082 coursework andmayfollow a structure such as: -

1).Assessment of 2020 changes in the Balance of payments and net foreign wealth (IIP)

2).The intertemporal model of the current account- the CA balance: likely changes and implications for future consumption - metzler diagram - implications for domestic investment

3).Exchange rate determination in the short run and the long run - What can theory tell us about current and likely future changes in the value of AUD- assessment of policy mechanisms such as interest rate changes that may impact on the value of the AUD

4).Elasticities and absorption approach to the current account - how might changes to the exchange rate flow through to the domestic economy. What about Y-A = X-M?

5).The RER and internal and external balance- automatic mechanisms of adjustment- Where is Australia currently on the SWAN diagram - possible policy interventions? (noting you can make assumptions about relative elasticities of the IB / EB schedules)

6).Macroeconomic policy options put in place over the year - likely outcomes / limitations-using the IS-LM-BP to illustrate

7).Choice of exchange rate regime - has Australia's exchange rate mechanism helped or hindered recovery

8).How well is Australia positioned to recover in 2021 - likely factors that will drive growth

9).Conclusion / discussion