DESCRIPTION OF COURSES

Close

AG ECON 602 MACROECONOMICS II                                                                            (3L+0P) I
Pre-requisite Ag Econ 502 Macroeconomics I

Objective
  The aim is to provide an analytical background to macro-economic issues and policy concerns such as inflation, trade cycles, stabilization policies and international financial markets.

Theory

UNIT I: INFLATION AND GROWTH
  Introduction to dynamic macro-economic models, Inflation and stagflation: measurement and effects, demand side and supply side inflation, Inflation- unemployment tradeoffs, recent developments in Inflation theory, empirical policy aspects of inflation, productivity and inflation, supply side economics.

UNIT II : TRADE CYCLES
  Classical and neo-classical theories of Investment, Acceleration principle, Trade cycles : its nature and causes, theories of capital and investment, Hicks model of trade cycles, role of economic policies

UNIT III: STABILIZATION POLICIES
  The instruments and impact of monetary and fiscal policies as an instrument of development, incidence of tax and fiscal policies, extension of Keynesian model: investment and economic growth, review of economic policies in India, case studies

UNIT IV: INTERNATIONAL MACRO-ECONOMIC ENVIRONMENT
  Internal and external borrowings, Deficit financing, International trade theories and exchange rates, International macro-economic policies and institutions.

Suggested Readings