Syllabus MACROECONOMICS

SEMESTER – IV

PAPER – 401

MACROECONOMICS – II

UNIT 1. THEORIES OF CONSUMPTION AND INVESTMENT

a) Consumption Functions

b) Fisher’s Inter-temporal Choice Model

c) Life-Cycle and Permanent Income Hypotheses

d) Business Fixed, Residential and Inventory Investments

Mankiw (2005) : Chapters 16 and 17**

UNIT 2. OPEN ECONOMY I – THE CONCEPTS

(a) Balance of Payments

(b) Trade Balance and Exchange Rates

D’Souza (2008): Chapers 2 and 5

UNIT 3. OPEN ECONOMY II –THE MUNDELL-FLEMING MODEL

N. Gregory Mankiw (2005): Chapter 12

UNIT 4 . ECONOMIC GROWTH

(a) Sources of Growth, Potential and Feasible Output

(b) The Determinants of Long-Run Growth and Solow - A Geometric Presentation

(c) The Golden Rule, Convergence and Poverty Traps

(d) Endogenous Growth

D’Souza (2008): Chapter 16

UNIT 5. MONETARY AND FISCAL POLICY

a) Inflation Targeting

b) The Design of Monetary Policy

c) The Government Budget Constraint

d) Issues in Fiscal Policy

Blanchard (2006) : Chapters 25 and 26

Suggested Readings

1. D’Souza, E. (2008): “Macroeconomics”, Pearson Education: New Delhi.

2. Blanchard, O. (2006) : “Macroeconomics” (IVth Edition), Pearson Education : New

Delhi.

3. N. Gregory Mankiw (2005)-Vth Edition, Macroeconomics, Worth Publishers