INTERMEDIATE MACROECONOMICS- I course introduces the students to principles of economics, how people make decisions, how to think like an economist etc,. Besides, students can understand the interplay between macroeconomic issues, targets and instruments along with introduction to National Income Accounting, sectoral classification of the economy, Social Accounting Laws, and measurement of macro variables and economic performance. This course gives the students a strong base to become policy makers of an economy with ability to measure the quality of life and Net Economic Welfare, Green Income etc. The study of real economy in the long, money and prices in the long run helps the students to participate in the macroeconomic policy decisions of the nation as a whole. It also helps in formal modelling of a macro-economy in terms of analytical tools. It discusses various alternative theories of output and employment determination in a closed economy in the short run as well as medium run, and the role of policy in this context. It also introduces the students to various theoretical issues related to an open economy.
Overview
Syllabus
Weeks
Lessons/Videos
I
1. Ten principles of economics: How people make decisions
2. Key concepts in Macroeconomics
3. Macroeconomic Issues, Targets and Instruments
4. Demand of Money: Quantity Theory of Money
II
5. Sectoral classification of the economy
6. Meaning and Definition of National Income or Social Accounting
7. International financial markets
8. Instruments of financial markets
III
9. Thinking like an economist: As scientist and policy adviser
10. Full employment and types of unemployment
11. Presentation of Social Accounts, Social Accounting’s Laws
12. Circular flow and national income: two, three and four sector economy
IV
13. Measuring the cost of living: Consumer Price Index , Green Income
14. Aggregate demand and aggregate supply: Equilibrium Determination
15. Introduction to National Income Accounting
16. Basic assumptions of Classical Theory of employment
V
17. Methods of calculating national income: Product method, Expenditure method, Income method
18. Inflation : Types of Inflation
19. Concepts of supply of money and demand for money in Fisher's equation
20. Open economy macroeconomics: basic concepts
VI
21. Say's Market Law
22. Deflation: Meaning - Causes and Effects of Deflation - Deflationary Gap
23. The Keynesian Theory: Concept of effective demand and its determinants
24. Structure and functions of financial market
VII
25. National Income accounting Identities: GNP and Quality of Life, Net Economic Welfare
26. Deriving the Phillips Curve from aggregate supply curve : trade - off between Unemployment and Inflation
27. Purchasing Power Parity
28. Balance of Payment theory and Balance of Payment Adjustments
VIII
29. Closed versus open economy
30. Analysis of income inequality and redistributive Measures
31. Two equations of quantity theory of money: Transactions approach or fisher's equation, Cash balance or Cambridge Equation
32. Monetary approach to balance of payments
IX
33. Evauation of the Classical Theory of employment: Keynes' criticism of Classical Theory
34. Causes and effects of Inflation, control of inflation
35. Wage price flexibility (Pigou's version) and saving and Investment Equality
36. Theories of Value of money
X
37. Fiscal and Monetary Policy for Internal and External balance: The Mundellian Model
38. Tobins Portfolio Selection Model: The risk aversion theory of liequidity preference and its superiority over keynesian theory
39. Friedman's View: The Long run Philips Curve
40. Rational Expectations Hypothesis: Stablization Policy and Ratex Hypothesis
XI
41. International Fischer Effect
42. Value of Money and Price Level
43. Comparision of classical and Keynesian Theory of Employment: Equilibrium Level of Income and Employment
44. Mundel-Fleming Model: IS-LM model for small open economy with exchange rate regime
XII
45. Baumol’s Inventory Theoretical Approach
46. Expenditure Switching and Expenditure Reducing Policies for Internal and External Balance: Swan Model.
47. Changes in the equilibrium level of Income: The Multiplier
48. Dornbusch Overshooting Model
XIII
49. Monetary Policy: Objectives and Importance – Quantitative and Qualitative Measures
50. Theories of Inflation and Inflationary Gap
Taught by
Dr. Venkatesh. R
