Intermediate Macroeconomics

Paper Code: 
24CECO 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 trade cycles models given by Kaldor, Samuelson and Hicks
  3. To analyze the IS LM &Mundell Fleming Model and its policy implications

 

Course Outcomes: 

Course

Learning outcome (at course level)

Learning and teaching strategies

Assessment Strategies 

Course Code

Course Title

24CECO 411

Intermediate Macroeconomics

(Theory)

Students will:

CO37: analyze the equilibrium in goods market and money market as well as evaluate the effects of monetary and fiscal policies on these equilibria

CO38: analyze different aspects of output, inflation and unemployment

CO39: analyze open economy macroeconomics boundaries

CO40: analyzedifferent aspects of trade cycles and theories related to it

CO41: analyze various growth models

CO42: contribute effectively in course-specific interaction

Approach in teaching: Interactive Lectures, Discussion, Case studies.

 

Learning activities for the students:

Presentations, Assignments and Group discussions.

Class activity, Assignments and Semester end examinations.

 

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
  • 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: 

Suggested Readings:

  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.

E-Resources:

Journals:

 

Academic Session: 
2024-25
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