macroeconomics
Macroeconomics
Objectives:
1. To deepen and widen students’ understanding of theories and laws that rule the national economies
2. To enhance students’ analytical ability
3. To give a macro-perspective to the economic phenomena around the world
4. To help students better comprehend the domestic and global economic realities and try to predict future course of events
References:
1. ‘Economics’ by Paul Samuelson
2. ‘Macroeconomics’ by Dornbusch Fischer
3. ‘Macroeconomics’ by Richard Froyen
4. ‘Macroeconomics’ by Ben Bernanke
Sr No
Topic
Learning Outcome
Reference
No of Sessions
1
Introductory, Definitions, nature, scope, issues
1
2
National Income: Circular flow, methods of measurement, forms, real-nominal, limitations, importance of savings, PPF
2
3
Aggregate Demand, Aggregate supply, Inflation, price index, theories of inflation, causes and effects, Indexation
3
4
Unemployment, Phillip’s curve, Stagflation, Okun’s law, Sacrifice ratio, Misery index
1
5
Keynesian Overview, Multiplier, Accelerator, Leverage effect, consumption function, investment function
2
6
Business Cycles, theories of business cycles, counter-cyclical policies
2
7
Fiscal Policy: the Social Loss Function, Automatic Fiscal Stabilizers, Deficits, government debt, Debt trap, crowding-in and crowding – out effects of deficits
2
8
Monetary Policy: definition, functions of money, M1, M2, M3, money-demand, money-supply, money multiplier, market interest rates, policy rates; Monetary policy instruments and their limitations, Liquidity trap
2
9
IS-LM curves, goods market and money market simultaneous equilibrium, shifts in IS-LM, monetary accommodation of fiscal expansion
2
10
International Linkages: BoP, Exchange rates- fixed, flexible; REER, PPP, factors affecting currency appreciation-depreciation, forex reserves; central bank intervention in forex markets and its sterilization, Arbitrage and ‘Carry trade’
Objectives:
1. To deepen and widen students’ understanding of theories and laws that rule the national economies
2. To enhance students’ analytical ability
3. To give a macro-perspective to the economic phenomena around the world
4. To help students better comprehend the domestic and global economic realities and try to predict future course of events
References:
1. ‘Economics’ by Paul Samuelson
2. ‘Macroeconomics’ by Dornbusch Fischer
3. ‘Macroeconomics’ by Richard Froyen
4. ‘Macroeconomics’ by Ben Bernanke
Sr No
Topic
Learning Outcome
Reference
No of Sessions
1
Introductory, Definitions, nature, scope, issues
1
2
National Income: Circular flow, methods of measurement, forms, real-nominal, limitations, importance of savings, PPF
2
3
Aggregate Demand, Aggregate supply, Inflation, price index, theories of inflation, causes and effects, Indexation
3
4
Unemployment, Phillip’s curve, Stagflation, Okun’s law, Sacrifice ratio, Misery index
1
5
Keynesian Overview, Multiplier, Accelerator, Leverage effect, consumption function, investment function
2
6
Business Cycles, theories of business cycles, counter-cyclical policies
2
7
Fiscal Policy: the Social Loss Function, Automatic Fiscal Stabilizers, Deficits, government debt, Debt trap, crowding-in and crowding – out effects of deficits
2
8
Monetary Policy: definition, functions of money, M1, M2, M3, money-demand, money-supply, money multiplier, market interest rates, policy rates; Monetary policy instruments and their limitations, Liquidity trap
2
9
IS-LM curves, goods market and money market simultaneous equilibrium, shifts in IS-LM, monetary accommodation of fiscal expansion
2
10
International Linkages: BoP, Exchange rates- fixed, flexible; REER, PPP, factors affecting currency appreciation-depreciation, forex reserves; central bank intervention in forex markets and its sterilization, Arbitrage and ‘Carry trade’