ECC3660 Business cycle fluctuations and monetary policy
Faculty of Business and Economics
ECC3660 Business cycle fluctuations and monetary policy is a level 3, 6-credit-point, undergraduate unit from the Faculty of Business and Economics, offered in 2026 in Semester 2 at Clayton. It needs (ECB2731, ECC2000, ECF2731 or ECW2731) and (ECB2330, ECC2010, ECF2331 or ECW2730).
- Credit points
- 6
- Offered in 2026
- Semester 2
- Clayton
- Assessment
- Exam 60%
- and 2 other tasks
- Workload
- 144 hours
- per semester
This is the 2026 handbook entry. See the 2027 entry.
Reviews
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Requisites
Before ECC3660
Prerequisites
Pass these before you enrol.
After ECC3660
No unit lists ECC3660 as a prerequisite in the 2026 handbook.
Enrolment rules
To be successful in this unit, background knowledge and application of maths is required at the equivalent of VCE Year 12 Higher level. You may have satisfied this by completing relevant prerequisite unit/s, or you have covered relevant topics in your final years of secondary study. You should self-assess your maths competency prior to enrolling in this unit.
Overview
The unit develops and examines the theoretical and empirical relationship between monetary policy, real activity, and the financial markets. A rigorous theoretical framework will be developed to analyse conventional and unconventional monetary policy, and their effects on the real economy. The analysis of the conduct of monetary policy will be developed in the context of a New Keynesian economic model. Recent examples and challenges of monetary policy conduct will be discussed with the help of the theoretical tools developed in the unit. The response of monetary policy in recent deep recessions, like the 2007-2009 great recession and the recession that followed the Covid-19 outbreak, will be examined.
Offerings in 2026
| Teaching period | Campus | Mode |
|---|---|---|
| Second semester | Clayton | On campus |
Assessment
- Quiz / Test20%
- Exercise20%
- Examination60%
Assessment details may change. Please refer to the assessment information in Moodle closer to the start of the teaching period.
Learning outcomes
When you finish this unit, you should be able to:
- 1
develop rigorous economic analysis to assess contemporary monetary theory and policy
- 2
discuss the use of empirical and theoretical models to assess the conduct of monetary policy
- 3
develop theoretical frameworks to understand the factors governing the relationship between monetary forces and economic activity
- 4
understand the principles, techniques and problems of implementing conventional and unconventional monetary policies
- 5
critically assess current controversies in monetary policy.
Workload and teaching
- Workshops24 hours
- Teaching approachActive learning
Minimum total expected workload to achieve the learning outcomes for this unit is 144 hours per semester typically comprising a mixture of scheduled learning activities and independent study. Independent study may include associated readings, assessment and preparation for scheduled activities. You are expected to complete all pre-class activities prior to your scheduled class, and post-class activities should be completed after your scheduled class. Learning activities may include a combination of teacher directed, peer directed and online engagement activities.
This unit engages you in actively applying your knowledge, skills and attributes in interactive, collaborative and reflective activities.
Learning resources
Required resources
Challe, Edouard. Macroeconomic Fluctuations and Policies. MIT Press, 2019.
Where it fits
ECC3660 is part of 4 areas of study in the 2026 handbook.
- ECONANLY01Specialisation elective unitsEconomic analysisNo reviews yet
- ECONOMIC07Macroeconomics, trade and financeEconomicsNo reviews yet
- ECONPOLY01Cluster 3: Macroeconomic theory and growthEconomics and economic policyNo reviews yet
- MCREFNMK01Core studiesMacroeconomics and financial marketsNo reviews yet
Contacts
- Chief Examiners
- Dr Isaac Gross
Common questions
What are the prerequisites for ECC3660?
You need (ECB2731, ECC2000, ECF2731 or ECW2731) and (ECB2330, ECC2010, ECF2331 or ECW2730) before you enrol. Enrolment rules also apply.
When is ECC3660 offered?
In 2026, ECC3660 runs in Semester 2 at Clayton.
How much work is ECC3660?
The handbook expects about 144 hours of study across the semester. No students have rated its difficulty yet.
Does ECC3660 have an exam?
Yes. The exam is worth 60% of the final mark, alongside 2 other tasks.
Which majors and minors include ECC3660?
ECC3660 is part of Economic analysis; Economics; Economics and economic policy; and Macroeconomics and financial markets.