Macroeconomics is a very basic Economics subject. It is part of curriculum in Economics, Commerce, Management and Engineering programs. This course is perfect blend with commerce, as both lead to better understanding of Local, National and Global Economy. Many concepts and theories that they learn from commerce perspective, this course will augment to that knowledge. It helps the student to mature and deepen the understanding of macroeconomic phenomenon. This course helps to understand Policy framework and its implications on the economy. This subject aids in understand different school of thoughts in Macroeconomics. It acts as a bridge between the understandings of Macro Economics at High School level to application of the subject in events across the Globe.
Overview
Syllabus
Week
Module No
Title of the Module
1
1
Introduction to macroeconomics and its concepts:
Types of macroeconomic variables like consumption expenditure, savings, investment, national income and its components. Concept of stock and flow variable
2
Circular flow of money in two sector, three sector & open economy. Development of macroeconomics since 17th Century.
3
Aggregate Supply & aggregate demand curve. Equilibrium in AS & AD in long run
4
Methods of national income accounting
2
5
Introduction to Fiscal & Monetary Policy- Its Objectives and instruments of Fiscal Policy.
6
Objectives & instruments of Monetary Policy. Effect of these instruments on the economy.
7
IS-LM Curve- The Goods market & IS- curve
8
The Money market & LM Curve.
3
9
Equilibrium in IS-LM Curve, crowding effect and effects of Tax, Money supply on these curves.
10
Consumption function & Aggregate Demand
11
Theories of consumption- Psychological and relative theories.
12
Life Cycle and Permanent Income Hypothesis.
4
13
Multiplier Theory- Simple Investment & Govt. Budget multiplier
14
Tax Multiplier & Foreign Trade Multipliers.
15
Effects of Multipliers with case studies.
16
Introduction to Inflation and various definitions.
5
17
Types of inflation and its measurement.
18
Inflation and interest rate.
19
Introduction to Unemployment- Types of unemployment.
20
Phillips curve- Static and Dynamic
6
21
Sacrifice ratio and role of expectations
22
Tax Regime in India and Laffer Curve
23
J. B. Says Law and capitalistic economy
24
Classical approach to labour market and equilibrium in the economy.
7
25
Keynesian theory and equilibrium.
26
Comparison of Classical and Keynesian theory.
27
Flow of goods & capital in an open economy
28
Saving Investment relationship- Classical and Swedish approach.
8
29
Introduction to Exchange Rates and concepts
30
Theories of Exchange Rate determination
31
Concept of Balance of Payments and Forex Reserves
32
Mundell- Fleming Model- I
9
33
Mundell- Fleming Model- II
34
Exchange Rate and Interest rate differentials
35
Investment function and types of investment.
36
Determinants of Investments, MEC and MEI
10
37
Theories of Investment
38
Investment sub- sectors- Business Fixed, Residential and inventory Investment.
39
Money- Functions & Types
40
Theories of Demand for money-Pre Keynesianism
11
41
Liquidity Preference theory
42
Theories of Demand for money-Post Keynesianism
43
Money multiplier and its components
44
Supply of money and stock of money supply
12
45
RBI & its objectives
46
Credit Disbursement policy and its regulation
47
Business Cycles- an Overview
48
Types of Business Cycles
Taught by
Dr. Vishakha Kutumbale
