Students Profile, Attendance, Internal marks
Course starting date 26th October, 2021
Course Completed on 17th February, 2022
Question paper:2018, 2020, 2021
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.
Question set 1 - Submission link
Unit -2. Money Market Class task Submission link
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 Part-1 Notes
The inventory theoretic approach to transanction demand for money –Baumol and Tobin (Notes) - Video 1, Video 2
Supply of money – credit creation by commercial banks – money multiplier – interest sensitivity of money supply Credit Creation Notes
Unit -3. Theories of Inflation
The Quantity Theory approach to Inflation. • Demand Pull Inflation and Inflationary Gap analysis; Its shortcomings
• Concepts of Cost Push & Mark Up inflation
• The Philips Curve and the trade-off between Inflation and Unemployment – short-run and long-run Philips Curve - Playlist
• Consequences of inflation – Measures to control Inflation.
Class task 3 -Submission Link
Phillips Curve - Lecture 3 Notes
Phillips Curve- NAIRU and NRU-Notes
Markup Inflation -Notes
Inflation - Notes
Lecture 1 - QTM, Velocity formulation - Notes , Video
Lecture 2 - Revision and Proportional relationship - Notes , Video
Lecture 3 - Cash balance approach - Notes , Video
Unit-3 Notes
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).
Unit-4 Notes
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.
Phillips Curve
(Discuss Inflation expectation augmented Phillips Curve? (10 marks) or Build a simplied model of trade off between inflation and unemployment? (2018, 5 marks) In this question you people have to write both simplified PC and inflation expectation augmented PC argument along with derivation of equation. Q. Why the phillips curve doesn't work ? Monetarist-Adaptive expectation - once expectation revise, SRPC shift up. LRPC is the locus of combination of SRPC, so no tradeoff, PC not work in the LR. Rational expectation- quick adjustment, no tradeoff New Keynesian PC - SR , wage rigidity - tradeoff but in the LR no tradeoff Q. Discuss the nature and implications of SRPC and LRPC ? Q. Compare SRPC differ from LRPC ? Q. What is NAIRU. How does it differ from NRU ? what factors determines NRU ?)