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Note - Lecture notes are not checked but notes provided here has relatively less mistakes.
Syllabus
1. Consumption Function
Empirical findings regarding Consumption Function – Alternative Theories regarding its behaviour – Keynes, Smithies, Duesenberry, Friedman, Ando-Modigliani.
a. Absolute income hypothesis (AIH) b. Relative income hypothesis (RIH) c. Permanent Income hypothesis (PIH) d. Life cycle income hypothesis (LIH)
Lecture 1 - Introduction, Technical notes and Keynes Psychological law and conjectures - Notes 1
Lecture 2 - Keynes Conjecture and technical notes on Proportional and non proportion relationship - Notes
Lecture 3 - Empirical Consumption Function - Notes
Lecture 4- Absolute Income hypothesis - Notes1 , Notes 2
Lecture 5 - Relative income hypothesis (RIH) Part 1 - Notes , Proposition Note
Lecture 6 - Relative income hypothesis (RIH) Part 2- Notes
Lecture 7 - Permanent Income hypothesis (PIH) - Notes1 , Notes2
Lecture 8 - Life cycle income hypothesis (LIH) - Notes , Video1 , Video2
2. Money Market
Three motives of holding money – Transanction, Precautionary and Speculative demand for money
• Keynsian liquidity preference theory – the liquidity trap – indeterminancy of rate of interest in the liquidity preference theory
• The inventory theoretic approach to transanction demand for money –Baumol and Tobin
• Supply of money – credit creation by commercial banks – money multiplier – interest sensitivity of money supply
Lecture 1 - Keynes Money demand Theory and Liquidity trap - Notes
Sub-topic - Rate of Interest determination in the Classical model - Check Macro-1 notes
Lecture 2 - Indeterminancy of rate of interest - Notes
Lecture 3 - Baumol's Inventory Approach to Transaction Demand for Money - Video
Lecture 4 - Tobin Portfolio approach to Money demand -Notes
Lecture 5 - Credit Creation ,Money Multiplier and Money Supply - Notes
3. 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).
Lecture 1 - PV criteria, MEC, Relation with amount of Investment, MEI- Reading 1
Lecture 2 - Investment function - Reading 2
Lecture 3 - Investment function - Reading 3
Lecture 4 - Fixed and Flexible Accelerator Principle of Investment - Reading 1
Lecture 5 - Acceleration Principle - Lecture Notes
Lecture 6 - Multiplier-acceleration model (Hicks) - Notes
4. Theories of Inflation
• The Quantity Theory approach to Inflation
Lecture 1 - QTM, Velocity formulation - Notes , Video
Lecture 2 - Revision and Proportional relationship - Notes , Video
Lecture 3 - Cash balance approach - Notes , Video
Lecture 4 - QT approach to Inflation - Concluding Notes
• Demand Pull Inflation and Inflationary Gap analysis; Its shortcomings
• Concepts of Cost Push & Mark Up inflation
Lecture 5 - Mark up Inflation - Notes
• The Philips Curve and the trade-off between Inflation and Unemployment – short-run and long-run Philips Curve
Lecture 6 - Phillips Curve - Notes
• Consequences of inflation – Measures to control Inflation.
Lecture 7 - Inflation - Notes
Internal Exam Topic
Process to upload pdf in Google form
Question paper (18/02/2021) -available from 8 am
Google form for Submission - submit before 4.30 pm
Use only A4 size page for examination, Rename pdf as <Your Name, Sem 3, Internal Exam>
Examination start 2 pm, Question paper provided 8 am on 18/02/2021
Examination is on 18th February, 2 pm 2021, a Google meet link will be provided in the website for initials and attendance in this regards.
15 marks x 1 = 15 , attempt out of two
5 marks x 3 = 15 marks, attempt out of 4 to 5
2 marks x 5 = 10 marks, attempt out of 6
References
1. Rowan, D.C – Output, Inflation & Growth
2. Mankiew – Macroeconomics
3. Sikdar, S – Principles of Macroeconomics, OUP
4. D’souza, Erol – Macroeconomics
5. Andrew B. Abel, Ben S. Bernanke, Bean Croushore – Macroeconomics, 8thEdn. Pearson.
6. Ackley (2nd ed.) – Macroeconomic Theory and Policy
7. Branson – Macroeconomic Theory and Policy
8. Dornbusch and Fisher: Macroeconomics
9. Froyen - Macroeconomics
10. Levacic – Macro Economics
Notice
Midterm Exam Schedule - First mid-term exam is on 7th January. First two unit - Consumption function and Money market is syllabus. Only thing I have not covered is credit creation by commercial banks – money multiplier , that I will cover before exam. Not giving exam -3, less than 70 percent score -1, less than 50 percent -2, Scoring 90 percent +1, 70 percent is the passing marks. Rename pdf properly, not doing it attract additional -1.
Rename pdf as < Your Name , Sem 3, Mid term exam>
This two topic cover 50 percent of the course. Paper will be application base/theoretical foundation base. Also after exam you people will have presentation as part of internal assessment. Absent students will get -3, not presenting what is written on paper will attract additional-1. Good performance will fetch you people anywhere between +1 to +4.
Mid term Exam Submission , Process to upload video in Google form , GOOGLE MEET LINK-7TH JAN
Mid term Exam Question Paper(7th January, 2020)
Unit -1, Unit-2 (Check the topic covered) and QTM approach to Inflation Unit-4
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