Intermediate Macroeconomics - I

Paper Code: 
ECO 312
Credits: 
3
Contact Hours: 
45.00
Objective: 

This course introduces the students to formal modeling 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.

9.00
Unit I: 
Aggregate Demand and Aggregate Supply Curves

Derivation of aggregate demand and aggregate supply curves; interaction of aggregate demand and supply.

9.00
Unit II: 
Inflation, Unemployment and Expectations

Phillips curve; adaptive and rational expectations; policy ineffectiveness debate.

9.00
Unit III: 
Open Economy Model

Short-run open economy model- Mundell-Fleming model.

9.00
Unit IV: 
Exchange Rate Determination

Purchasing power parity; asset market approach; Dornbusch's overshooting model.

9.00
Unit V: 
Balance of payments

Monetary approach to balance of payments.

Essential Readings: 

1. Dornbusch, Fischer and Startz, Macroeconomics, McGraw Hill, 11th edition, 2010.
2. N. Gregory Mankiw. Macroeconomics, Worth Publishers, 7th edition, 2010.
3. Richard T. Froyen, Macroeconomics, Pearson Education Asia, 2nd edition, 2005.
4. Paul R. Krugman, Maurice Obstfeld and Marc Melitz, International Economics, Pearson Education Asia, 9th edition, 2012.

References: 
  1. Shapiro, E. (1996), Macroeconomic Analysis, Galgotia Publications, New Delhi.
  2. Ahuja, H.L., Macro Economic Analysis, S. Chand.
  3. Diulio, Eugene A., Schaum’s Outline of Theory and Problems of Macroeconomics, McGraw-Hill.
  4. Ackley, G. (1976), Macroeconomics: Theory and Policy, Macmillan Publishing Company, New York.

 

Academic Session: 
2018-19
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