Intermediate Macroeconomics-II

Paper Code: 
ECO 412
Credits: 
3
Contact Hours: 
45.00
Max. Marks: 
100.00
Objective: 
  1. To understand the different views on Output, Inflation and Unemployment
  2. To examine the Mundell Fleming model and its policy implications.
  3. To comprehend different models of economic growth like Harrod-Domar and Solow models.

Course Outcomes (COs):

Course

 Outcome (at course level)

Learning and teaching strategies

Assessment Strategies 

Paper Code

Paper Title

ECO 412

Intermediate Macroeconomics-II

CO49: Students will compare the different views on inflation and unemployment.

CO50: Students will analyze the working of monetary and fiscal policies and various trade cycle theories.

CO51: Students will comprehend the Mundell Fleming model of open economy.

CO52: Students will examine the long-run dynamic issues and economic growth.

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.

 

9.00
Unit I: 
Output, Inflation and Unemployment

   Natural Rate Theory; Friedman’s view on Monetary Policy, output and inflation- Phillips Curve; Keynesian interpretation of Phillips curve.                                    

                          

 

9.00
Unit II: 
Fiscal and Monetary Policy

Active or passive; monetary policy objectives and targets; rules versus discretion: time consistency; the government budget constraint; government debt and Ricardian equivalence.

 

9.00
Unit III: 
Theories of Trade Cycle

Concept and Phases of Trade Cycle, Theories of Trade Cycle- Kaldor’s Theory , Samuelson’s Multiplier-Accelerator Model and Hicks Theory.

 

9.00
Unit IV: 
Open Economy Macroeconomics

Mundell Fleming model of a small open economy under perfect capital mobility with fixed and flexible exchange rates regimes, analysis of effectiveness of monetary, fiscal and trade policies.

 

9.00
Unit V: 
Economic Growth

Harrod-Domar model; Solow model; golden rule; technological progress and elements of endogenous growth.

 

 

 

 

  •  
Essential Readings: 
  • Dornbusch, Fischer and Startz, Macroeconomics, McGraw Hill, 11th edition, 2010.
  • N. Gregory Mankiw. Macroeconomics, Worth Publishers, 7th edition, 2010.
  • Richard T. Froyen, Macroeconomics, Pearson Education Asia, 2nd edition, 2005.
  • Karl E. Case and Ray C. Fair, Principles of Economics, Pearson Education Inc., 8th Edition, 2007.
  • Ahuja, H.L., Macroeconomics: Theory and Policy, S. Chand, 20th edition 2016.
  • Charles I. Jones, Introduction to Economic Growth, W.W. Norton & Company, 2nd edition, 2002.

 

Academic Session: 
2021-22
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