Course Outcomes (COs):
Course |
Outcome (at course level) |
Learning and teaching strategies |
Assessment Strategies |
|
Paper Code |
Paper Title |
|||
ECO 222 |
Macroeconomic Theory –II |
CO18: Students will analyze the post-Keynesian and New classical approaches to macroeconomics. CO19: Students willcomprehend the various aspects of inflation-unemployment relationship and trade cycles. CO20: Students willexamine various macroeconomic policies and their implications on the basis of coherent theoretical frameworks. |
Approach in teaching: Interactive Lectures, Discussion, Case studies.
Learning activities for the students: Presentations, Assignments and Group discussions. |
Class activity, Assignments, Quiz and Semester end examinations. |
The IS LM model; graphic and algebraic derivation of IS and LM curves; factors that affect the equilibrium income and interest rate; relative effectiveness of monetary and fiscal policies.
Monetarist-Fiscalist debate on Policy Activism. New classical approach to macro economics. Real Business Cycles, New Keynesian Macroeconomics- Sticky Price (Menu Cost) Model, Efficiency Wage Hypothesis.
Inflation –Unemployment trade off - The Phillips Curve; The natural rate of unemployment hypothesis and Adaptive expectation hypothesis;
Relationship between short run and long run Phillips’ Curve; Sacrifice Ratio and Policy of disinflation.
Concept and Phases of Trade Cycle, Theories of Trade Cycle- Kaldor’s Theory , Samuelson’s Multiplier-Accelerator Model, Hicks Theory ; Control of business cycles – relative efficacy of monetary and fiscal policies.
Mundell - Fleming model of a small open economy under imperfect and perfect capital mobility with fixed and flexible exchange rate regimes. Analysis of effectiveness of monetary and fiscal policies.