Macroeconomics-II

Paper Code: 
ECO 412
Credits: 
3
Contact Hours: 
45.00
Max. Marks: 
100.00
Objective: 

The syllabi aims at introducing the students to formal modeling of a macro economy in terms of analytical tools.

9.00
Unit I: 
IS – LM Curve Model - I
  • The Goods Market and the IS Curve;
  • The Money Market  and the LM Curve;
  • Short  Run Equilibrium.
9.00
Unit II: 
IS - LM Curve Model – II
  • Shifts in IS Curve by Fiscal Policy;
  • Shifts in LM Curve by Monetary Policy;
  • Interaction between Monetary and Fiscal Policy;
9.00
Unit III: 
Inflation, Unemployment and Phillips Curve
  • Short Run Trade Off between Inflation and Unemployment;
  • Adaptive Expectations and Inflation Inertia;
  • Disinflation and Sacrifice Ratio;
  • Rational Expectations and Possibility of Painless Disinflation.
9.00
Unit IV: 
Open Economy Models
  • Mundell-Fleming model;
  • The Small Open Economy under Floating Exchange Rates;
  • The Small Open Economy under Fixed Exchange Rates;
9.00
Unit V: 
Fiscal and Monetary Policy
  • Instruments;
  • Active or Passive;
  • Rules versus Discretion.
Essential Readings: 
  1. N. Gregory Mankiw, Macroeconomics, McGraw Hill, 11th edition, 2010.
  2. Dornbush, R., Stanley Fischer and Richard Startz, 11th  edition, Macroeconomics, McGraw Hill.
  3. Errol D’Souza, Macroeconomics, Pearson Education, 2008.
  4. Froyen, R.T. (2001), Macroeconomics- Theories and Policies, Addison Wesley Longman, Singapore.
  5. Shapiro, E. (1996), Macroeconomic Analysis, Galgotia Publications, New Delhi.
  6. Ahuja, H.L., Macro Economic Analysis, S. Chand.
  7. Diulio, Eugene A., Schaum’s Outline of Theory and Problems of Macroeconomics, McGraw-Hill.
  8. Ackley, G. (1976), Macroeconomics: Theory and Policy, Macmillan Publishing Company, New York.
Academic Session: 
2017-18
  • Printer-friendly version
  • PDF version