Course outline for MBA FullTime Program 2012 Course name: Course code Macroeconomic analysis and policies

Term: II Course objective: Provide an understanding of the basic macroeconomic concepts and theories which will enable the students to understand the business environment and the global economy in which they work. Evaluation Criteria ( in %) Class participation/Quiz: 10 Case /Assignment/Presentations: 20 Mid term Exam: 25 End Term Exam: 45 Pedagogy: Lectures and class discussions, case studies when indicated in the course outline and reading relevant articles in the newspaper and discussing them in the class. Faculty:Sangita Kamdar, Souvik Dhar, Chandrima Sikdar Session Outline Session1 Topic: Limits of the invisible hand. The role and functions of the government. Introduction to macroeconomic thought Classical, Keynesian and Monetarism. Read: Text Chapter 16, 19A Blanchard Topic: Objectives of economic policy-growth, inflation, employment and balance of payments, A brief discussion of each policy objective. Conflict in objectives. Tools of macroeconomic policy Read: Text Chapter 19 Sloman John and Mark Sutcliffe, Economics for Business, Pearson Education, Chapter 26 Topic: Economic Growth : Factors determining economic growth, economic growth and business cycles, Economic reforms and economic performance in India. Read: Chapter 26B, Appendices of Chapter 22, 26 Topic: Objectives of economic policy : Inflation, causes of inflation, measurement, the Indian context Read: Chapter 20 and its appendix Topic: Objectives of economic policy: Unemployment, theories explaining unemployment, measurement, unemployment in the Indian context Read: Chapter 20 and its appendix Topic: Circular flow of income and expenditure-factor and commodity markets, real and money flows National income : Measurement, Distribution (limitations), Growth versus development debate. Read: Text Chapter 20 1

Session 2

Session 3

Session 4 Session 5

Session 6

Dwivedi D.N., Macroeconomics, Mcgraw Hill, 2nd edition, Chapter 3 Session 7 Topic: National income and related concepts Read: Text Chapter 20 Case study: GDP fetishism Session 8 India: Macroeconomic performance and policies, Structural change Read: Text Appendix of Chapter 19 ICRIER Working Paper 225, 2008 Session 9 Topic: Consumption and Investment Read: Text Chapter 21 Session 10 Topic: Business cycles and aggregate demand: The multiplier and fiscal policy Read: Text Chapter 22 Session 11 Topic: Goods and financial markets: The IS LM model Read: Macroeconomics by Gregory Mankiw Chapter 10/ Handout Session 12 Topic: Money and the financial market: Demand for money, supply of money, determination of the interest rate, Credit creation by commercial banks. Read: Text Chapter 23 Session13 Topic: Monetary Policy: techniques of monetary control, determination of the interest rate, monetary policy and money supply. Read: Text Chapter 24 Session14 Topic: IS LM model crowding out, monetary transmission mechanism Session15 Topic: AD AS model and determination of prices and output Read: Chapter 19 and 30 Session16 Topic: Inflation, Phillips Curve Read: Text Chapter 30 Session17 Topic: Government taxation, expenditure, deficit and debt Read: Text Chapter 16, 31 Shyamal Roy Chapter 4 Session18 Topic: Other theories of economic growth Read Text Chapter 25 Session19 Discussion on present macroeconomic scenario Session 20 Review of the course Text: Samuelson Paul and William Nordhaus, Economics, 19th edition, Tata McGraw Hill Publication References edition Internet References: Blanchard Olivier, Macroeconomics, Pearson, 4th edition DSouza Errol, Macroeconomics, Pearson Dwivedi D.N., Macroeconomics, Mcgraw Hill, 2nd edition Mankiw Gregory, Macroeconomics, Worth, 5th edition Dornbusch et al, Macroeconomics, Tata Mcgraw Hill, 8th

Case book references: