RBA Teacher Immersion Reflections

As part of ETAWA's commitment to fostering and developing economics teachers skills, three teachers were supported by the association to attend the Reserve Bank of Australia's Teacher Immersion Event in the July school holidays. As part of the event, teachers were given the opportunity to network with other educators from across the country, and hear the reflections and analysis from a number of senior figures in the Reserve Bank of Australia. The three teachers have provided their own reflections on the day that provide contemporary data, insightful analysis, and reflections for educators of economists on how they can bring the subject to life in their own classrooms.

From Economic Models to Policy Judgement

My reflection from the 2026 RBA Teacher Immersion Program

In July, I attended the Reserve Bank of Australia's Teacher Immersion Program in Sydney with the support of ETAWA.

A key takeaway was not simply access to contemporary economic data, but insight into how economists move from evidence and models to judgement when indicators conflict and policy objectives compete. This is particularly timely for the 2027 SCSA Economics ATAR syllabus, where the revised grade descriptions place greater emphasis on integrating economic concepts, models and data to make well-supported judgements. 

Sarah Hunter, Assistant Governor (Economic), demonstrated this process through the RBA’s assessment of current macroeconomic conditions. GDP growth, household consumption, labour-market conditions, wages, inflation and productive capacity were considered collectively rather than as discrete indicators. Importantly, the outlook remained conditional: demand is expected to moderate and labour-market tightness to ease, while uncertainty remains around external disruptions and the lagged effects of monetary policy.

 

Figure 1 provides a useful example of the judgement required when economic indicators do not provide a uniform signal. Measures based on underemployment and hours-based underutilisation indicate comparatively tight conditions, while job advertisements and job-finding sit on the looser side of trend; the estimated ranges for several measures cross zero. Asking students “To what extent does the evidence indicate that the Australian labour market remains tight?” requires them to weigh the magnitude, direction and uncertainty of competing indicators rather than relying mechanically on the unemployment rate.

Michelle Bergmann’s analysis of inflation provides another opportunity to deepen this reasoning. Inflationary pressures were considered through domestic demand and supply conditions, external shocks and inflation expectations. External pressures may transmit through exchange rates and import prices, with the eventual effect on consumer prices influenced by the extent of cost pass-through. For students, this moves analysis beyond simply classifying inflation as “demand-pull” or “cost-push” towards considering its source, transmission and persistence.

Kate Hickie’s monetary policy session extended this thinking to the policy implications of a negative supply shock. The 2027 syllabus explicitly requires students to analyse changes in aggregate supply using AD/AS and recommend policies to mitigate demand and supply shocks.

In Figure 2, a negative supply shock shifts short-run aggregate supply from SRAS₀ to SRAS₁, increasing the price level from P₀ to P₁ while reducing real output from potential output YF to Y₁. The model is relatively straightforward; however, the appropriate policy response is not. Hickie demonstrated how a negative supply shock can place price stability and full employment in tension. Tightening monetary policy may contain demand and reduce the risk of inflation becoming persistent, but it cannot directly reverse the supply constraint and may further weaken output and employment. 

Conversely, a less restrictive response may limit further weakening in activity and employment, but risks allowing inflationary pressures to persist or become embedded in expectations. The appropriate response therefore depends on the nature and persistence of the shock, prevailing economic conditions, inflation expectations and the RBA's assessment of risks.

A useful application for Unit 4 is therefore to provide students with Figure 2 alongside contemporary inflation, GDP and labour-market evidence and ask them to recommend whether monetary policy should tighten, hold or ease. A well-supported judgement requires students to distinguish the initial source of inflation from its likely persistence, weigh competing macroeconomic objectives, and recognise that monetary policy operates with lags. This avoids the mechanical conclusion that inflation above target necessarily requires a higher cash rate.

The immersion reinforced that contemporary data should do more than provide examples for established theory. Models provide a framework; data provides evidence; economic judgement requires students to reconcile the two under uncertainty. The 2027 syllabus creates an opportunity to make this progression more explicit, moving students beyond learning Economics towards thinking economically.

I am grateful to ETAWA for sponsoring my participation in the program and to the RBA presenters for sharing their expertise with the Economics teaching community.

Sayana Barnes
Iona Presentation College

Strengthening Confidence in Teaching Economics

On 10th July 2026, I attended the Reserve Bank of Australia’s (RBA) annual Teacher Immersion Event at the University of Sydney. The event was the largest Teacher Immersion Event hosted by the RBA to date, bringing together Economics teachers from schools across Australia. The event provided a valuable opportunity to strengthen subject knowledge, develop confidence in teaching senior Economics, engage directly with economists and policymakers and establish professional connections with teachers from across the country.

Developing Subject Knowledge and Teaching Practice

A key benefit of the event was the opportunity to up-skill in Economics as a teacher new to the subject at a senior school level this year. The sessions provided current, authoritative information about the Australian economy and allowed teachers to connect economic theory and concepts taught in the classroom with the economic conditions facing Australia.

The session ‘An Economic Update’, presented by Sarah Hunter, Assistant Governor of the Economic Group at the RBA, provided valuable insight into the RBA’s current assessment of the Australian economy. A key takeaway was the RBA’s decision to maintain the cash rate at 4.35%, reflecting ongoing concerns about elevated inflation. The session highlighted that inflationary pressures were already above desirable levels prior to the conflict in the Middle East, with higher fuel prices subsequently adding further pressure. It was particularly valuable to gain first-hand insight into the RBA’s expectations for the remainder of 2026, including the prospect of further increases in the cash rate later in the year. This provided a clear real-world example of how contractionary monetary policy can reduce aggregate demand and slow GDP growth, with the aim of bringing demand back into line with sustainable supply and returning inflation to its target. This was particularly valuable in developing a deeper understanding of macroeconomics that can incorporated into senior Economics lessons and assessment preparation in Unit 2.

Similarly, the sessions on Inflation, Fiscal and Monetary Policy provided useful real-world context that can support the teaching of these concepts. Hearing directly from professionals and policy-makers working in these areas helped to strengthen the connection between curriculum concepts and the policy decisions being made in Australia.

Professional Networking and Collaboration

In addition to broadening curriculum knowledge, the event also provided a valuable networking opportunity. Meeting Economics teachers from different states and territories allowed me to exchange ideas about teaching practices, resources, assessment and approaches to senior Economics.  The ‘New Teacher Focus’ session, presented by practicing teachers Rhian Bilclough and Geoffrey O’Neill and chaired by Peter Rickards from the RBA, was particularly helpful to developing confidence and capability as a new teacher of senior Economics. Rhian shared a variety of strategies that she had developed over her 12 years of Economics teaching experience, including data interpretation lessons (or ‘D-Day’), weekly formative assessment and an extensive professional reading list to help foster passion for the subject and develop best practice.

Impact on Professional Practice

Overall, the Teacher Immersion Event was a highly beneficial professional learning experience. It increased my subject knowledge, provided first-hand insight into Australia’s economic outlook and policy settings and strengthened my confidence in teaching senior Economics. The opportunity to hear directly from RBA economists and policymakers was particularly valuable, as it provided information and perspectives that can be transferred directly into my classroom teaching.

The event also demonstrated the value of professional networks beyond an individual school. The connections made with Economics teachers from across Australia provide opportunities for continued sharing of resources, ideas and professional knowledge. The RBA Teacher Immersion Event therefore made a meaningful contribution to both my professional development and capacity to deliver engaging, current and informed senior Economics education.

Alexandra Strickland
John Forrest Secondary College