Credit

4.00   (L-T-P:   3-1-0)

Department / Center / School / Unit

Economics

Course Objectives

This course aims to introduce advanced macroeconomic theory and policies. It deals with the main principles of the determination of real income, employment, price level and exchange rates. It provides an understanding of the contending macroeconomic theories, including the Classical, Keynesian, Monetarist, Real Business Cycles and Dynamic Macroeconomics. The course discusses macroeconomic policies, as also the challenges in implementing them in a globalized economy.

Course Contents

This course begins with a detailed study of macroeconomic concepts, which include an analysis of India’s national income and balance of payments data. It provides an understanding of the contending theories of employment, income distribution, money supply, and price-wage relationships. The course also deals with exchange rates and other open economy macro issues. It discusses the classical and neoclassical theories of the macro economy, as also the critiques of these theories by Keynes, Kalecki, and their followers. In some part of this course, students will be introduced to the emerging field of Macroeconomics along the line of Real Business Cycles and Dynamic Macroeconomics (Ramsey economy). The course examines macroeconomic policies, and the challenges faced by governments and the Central Banks in implementing them, especially in the context of the integrated nature of global finance and production.

Suggested References

Bhaduri, A., Macroeconomics: The Dynamics of Commodity Production, Macmillan India Limited, 1986.
Branson, W.H., Macroeconomic Theory and Policy, 3rd Edition, Harper and Row, 1989.
Barro and Sala-i Martin: Economic Growt, 2nd edition, MIT Press 2004
Daron Acemoglu: Introduction to modern Economic Growth, 2009, Princeton University Press.
David Romer, Advanced Macroeconomics, 4th edition, McGraw-Hill Education
Dornbusch, R., and Fischer, S., Macroeconomics, 10th Edition, Irwin Professional Publisher, 2007.
Paul K., and Maurice O., International Economics: Theory and Policy, 6th Edition, Addison-Wesley, 2003.
Taylor, L., Reconstructing Macroeconomics: Structuralist Proposals and Critiques of the Mainstream, Harvard University Press, 2008.
Mankiw, G. N., Macroeconomics, 6th Edition, Worth Publishers, 2006.
Snowdon, B., and Vane, H. R., Modern Macroeconomics: Its Origins, Development and Current State, Edward Elgar, 2005.
Snowdon, B., and Vane, H. R., A Macroeconomics Reader, Routledge, London, 1997.
Friedman, M., and Anna S., A Monetary History of the United States, 1867-1960, National Bureau of Economic Research, 1963.
Kalecki, M., Selected Essays on the Dynamics of Capitalist Economy 1933-1970, Cambridge University Press, 1971.
Keynes, J.M., The General Theory of Employment, Interest and Money, Macmillan, 1936.