Course Starting Date 29th August 2022
Course Completed on 22nd Dec, 2022
Internal Exam-Link 02/01/2023
Question paper:2018, 2020, 2021
Internal evaluation -
First Criteria Assignment marks for each units = 1, which = 4 marks. Final Internal exam Subjective/Objectives will be decided later on , weightage, 6 marks
2nd Criteria Assignment marks for each units = 1, which = 4 marks. Final Internal exam Subjective/Objectives will be decided later on , weightage, 6 marks- (2 additional marks) , Attendance 75 percent= 2 marks, Class participation and presentation = 2 marks(Incentive marks). Second criteria includes 4 incentive marks.
Content/ Syllabus: Unit wise course content distribution
Unit -1. Consumption Function
Empirical findings regarding Consumption Function – Alternative Theories regarding its behaviour – Keynes, Smithies, Duesenberry, Friedman, Ando-Modigliani.
Unit 1 Class task -Theories of Consumption -Submission Link (Submit by 14th September, Wednesday.)
Lecture 1- Keynes Theory of Consumption
Lecture 2- Empirical Evidence and Later development
Lecture 3- Absolute Income Hypothesis
Lecture 4- Relative Income Hypothesis
Lecture 5- Permanent Income Hypothesis
Lecture 6- Life Cycle Hypothesis
Unit -2. Money Market
Three motives of holding money – Transanction, Precautionary and Speculative demand for money. Keynsian liquidity preference theory – indeterminancyof rate of interest in the liquidity preference theory – the liquidity trap
Liquidity Preference Theory Video
The inventory theoretic approach to transanction demand for money –Baumol and Tobin Video 1, Video 2
Supply of money – credit creation by commercial banks – money multiplier – interest sensitivity of money supply
Credit Creation by Commercial banks
Class task 2.A, Class notes submission Link, 10 pm, 11 October, 2022, Class task 2.B Question set- Link , Submission Link , Submit by 10 pm, 11 Oct,2022
Unit -3. Theories of Inflation
The Quantity Theory approach to Inflation. • Demand Pull Inflation and Inflationary Gap analysis; Its shortcomings
Demand Pull Inflation and Inflationary gap-Notes
Demand Pull Inflation, Inflationary gap and its short coming-Notes
Concepts of Cost Push & Mark Up inflation
Cost Push Inflation Notes, Markup Inflation
Consequences of inflation – Measures to control Inflation. - Notes
The Philips Curve and the trade-off between Inflation and Unemployment – short-run and long-run Philips Curve
Unit-4. The Investment Function
• The Keynesian analysis of Investment – The Marginal Efficiency of Investment, and its relation with the amount of Investment – Shortcomings of Keynesian analysis
• Net Present Value criterion and Marginal Efficiency criterion of Investment
• The Fixed Accelerator Principle of Investment – its Implications and Limitations.
• The Flexible Accelerator Principle of Investment – its Implications and Limitations, (Multiplier accelerator theory).
Notes
Investment Part 1 - Notes - Link
Investment Part 2 - Accelerator Principle - Link
References/ Suggested Readings
1. Dornbusch, Fischer and Startz: Macroeconomics, 12th Edition. McGraw Hill Education India.
2. N. Gregory Mankiw and Mark P. Taylor: Macroeconomics, 4th Edition, Cengage Learning (India).
3. Richard T. Froyen: Macroeconomics Theories and Policies, 12th Edition, Pearson Education India.
4. Abel, Bernanke and Croushore: Macroeconomics, 8th Edition, Pearson.
5. Olivier Blanchard: Macroeconomics, 7th Edition, Pearson Education India.
6. D.N Dwivedi: Macroeconomics Theory and Policy, 5th Edition, McGraw Hill India.
7. Sampat Mukherjee: Macroeconomics A Global Text, 1st Edition, New Central Book Agency (P) Ltd.