This course is a sequel to Intermediate Macroeconomics I. In this course, the students are introduced to the long run dynamic issues like growth and technical progress. It also provides the micro-foundations to the various aggregative concepts used in the previous course.
Harrod-Domar model; Solow model; golden rule; technological progress and elements of endogenous growth.
Consumption: Keynesian consumption function; Fisher’s theory of optimal intertemporal choice; life-cycle and permanent income hypotheses; rational expectations and random-walk of consumption expenditure.
Components of Investment; determinants of business fixed investment; residential investment and inventory investment; Acceleration Principle; Tobin’s Q theory
Active or passive; monetary policy objectives and targets; rules versus discretion: time consistency; the government budget constraint; government debt and Ricardian equivalence.
Organization and Management of Reserve Bank of India; Functions of RBI and instruments of credit control.
Links:
[1] https://economics.iisuniv.ac.in/courses/subjects/intermediate-macroeconomics-ii-0
[2] https://economics.iisuniv.ac.in/academic-session/2019-20