Intermediate Macroeconomics

Paper Code: 
CECO 411
Credits: 
6
Contact Hours: 
90.00
Max. Marks: 
100.00
Objective: 

1.      To comprehend Friedman’s & Keynesian view on Phillips Curve.

2.      To discuss the various trade cycles like Kaldor, Samuelson and Hicks’

3.      To analyze the IS LM &Mundell Flemming Model and its policy implications

18.00
Unit I: 
IS-LM Curves Analysis
  • Goods market and IS curve – Meaning, Graphic and Algebraic derivation, elasticity of IS curve
  • Money market and LM curve - Meaning, Graphic and Algebraic derivation, Classical, Intermediate and Keynesian ranges
  • Factors affecting the slope of IS and LM curves
  • Shifting of IS and LM curves
  •  Simultaneous equilibrium in the Goods and Money market.
  • Relative effectiveness of monetary and fiscal policy in IS-LM Model
18.00
Unit II: 
Output, Inflation and Unemployment
  • Inflation – demand pull inflation (views of Monetarists’, Keynes and Bent Hanson), structural inflation and mark up inflation
  • Stagflation – meaning and control
  • Natural Rate Theory of unemployment.
  •  Friedman’s view on effectiveness of monetary Policy, output and inflation- Phillips Curve, Tobin’s view, Solow’s view
  • Keynesian interpretation of Phillips curve
  • Adaptive and rational expectations, long run Phillips curve with policy implications
18.00
Unit III: 
Open Economy Macroeconomics
  • Mundell Fleming model of a small open economy under perfect capital mobility with fixed and flexible exchange rates regimes, assumptions
  • Algebraic and graphical derivation
  •  Analysis of effectiveness of monetary, fiscal and trade policies
18.00
Unit IV: 
Theories of Trade Cycle
  • Trade Cycle- Meaning and causes.
  • Phases of Trade Cycle
  • Kaldor’s Theory of trade cycle
  • Multiplier-Accelerator interaction
  • Samuelson’s theory of trade cycle
  • Hicks’ theory of trade cycle
  • Measures to control trade cycles
18.00
Unit V: 
Economic Growth models

·         Harrod Domar Model

·         Solow model of long run growth

·         Kaldor’s model of growth

·         The Golden Rule of Accumulation

·         Models of technical change

·         Meade’s Neo- classical model of economic growth

           Endogenous growth theory

Essential Readings: 

1.      Froyen, R. T., Macroeconomics- Theories and Policies Pearson Education, 10th   Edition, 2018.

2.      Ahuja, H.L., Macroeconomics: Theory and Policy S. Chand., 20th Edition, 2019.

References: 

1.Case K. E., Ray C. F. et al., Principles of Economics Pearson Education Inc., 12th Edition, 2017.

2.      Dornbusch, R. et al. Macroeconomics McGraw Hill, 12th Edition, 2018.

3.      Mankiw, N. G.,Macroeconomics, Worth Publishers, 10th Edition, 2019.

4.      Branson, W. H. Macroeconomics: Theory and Policy, East West Book Pvt Ltd., 3rd Edition, 2005.

Academic Session: 
2023-24
  • Printer-friendly version
  • PDF version