Tips for teachers
The Reserve Bank is keen to see as many students as possible involved in some way in the Monetary Policy Challenge. Although only three to five team members will represent their school at the regional finals, other class and school members, teachers or friends are encouraged to get involved by helping the team to undertake their research and prepare their case. The more students who get involved the better.
You could consider the following approaches to involve the entire class.
- The class could divide into several teams of four and hold an intra-class play-off to decide which team should represent the school or college in the three presentation rounds.
- The whole class could help with the research, preparation and brief. For example, the class could be split into groups analysing different sectors of the economy. Each group could present their findings and one person from each group could be nominated to join the team competing in the Monetary Policy Challenge.
- The team could practise their presentation in front of the class. The class could pretend to be the judges during a question and answer session.
Please feel free to contact Emily Pedersen (email firstname.lastname@example.org) with any questions that arise during your analysis of the economy. If appropriate Emily will pass on your technical or theoretical queries to Reserve Bank economists who will be more than happy to help.
The Monetary Policy Challenge competition provides a valuable learning activity for economics students in the senior school, particularly those in Y13 economics classes. It provides a focus for teaching and learning in the macro-economics section of the course.
The Monetary Policy Challenge links to the curriculum as follows:
NCEA achievement standard: Economics 3.4 (AS 906320)
Describe aggregate economic activity which is derived from Level 4 of the Economics Forms 3 – 7 Syllabus for Schools
This achievement standard involves describing the aggregate level of economic activity and how the aggregate demand and aggregate supply model is used. It also requires describing influences on New Zealand’s aggregate economic activity.
The achievement criteria (for achievement with excellence) require students to:
- describe the aggregate level of economic activity and how the aggregate demand and aggregate supply model is used.
- fully explain influences on New Zealand’s aggregate economic activity.
By becoming involved in the Monetary Policy Challenge competition students are encouraged to integrate many areas of the economics curriculum identified in the achievement standard’s explanatory notes. These are summarised below:
- use recent statistics and current government policies when describing influences and explaining relationships associated with New Zealand’s aggregate economic activity
- describe the aggregate level of economic activity using the circular flow model, using the components of aggregate demand in measuring the level of economic activity, nominal and real GDP and the business (trade) cycle
- use the aggregate demand (AD) and aggregate supply (AS) model to describe the effect on AD of changes in consumption, government revenue and expenditure, investment, exports and imports and the effect on AS of exogenous changes in nominal wages, imported factor costs and productivity
- describe changes in equilibrium in terms of price level, national income (= output = real GDP) and employment
- describe the influences on New Zealand’s aggregate economy resulting from monetary policy (the roles of the Reserve Bank [Reserve Bank of New Zealand Act 1989 and the Policy Target Agreement] and the effect of a change in the official cash rate on market interest rates and the impact of these on consumption, investment, exchange rates and net exports, as well as describing the (inflationary) impact of external influences and the government’s fiscal policy.