Intermediate Macroeconomics - II

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

Course Objectives:

 

The objectives of this course are –

 

  1. To gain knowledge of application of mathematical tools in dealing the macroeconomic problems.
  2. To know about features of closed and open economy models.
  3. Getting knowledge of long-run dynamic issues and economic growth.

 

Course Outcomes (COs):

Course

 Outcome (at course level)

Learning and teaching strategies

Assessment Strategies 

Paper Code

Paper Title

ECO 412

Intermediate Macroeconomics-II

CO49: Understand the different views on inflation and unemployment.

CO50: Analyze the working of monetary and fiscal policies and various trade cycle theories.

CO51: Comprehend the Mundell Fleming model of open economy.

CO52: Gain knowledge of 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: 
  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. Karl E. Case and Ray C. Fair, Principles of Economics, Pearson Education Inc., 8th Edition, 2007.
  5. Ahuja, H.L., Macroeconomics: Theory and Policy, S. Chand, 20th edition 2016.
  6. Charles I. Jones, Introduction to Economic Growth, W.W. Norton & Company, 2nd edition, 2002.

 

Academic Session: 
2020-21
  • Printer-friendly version
  • PDF version