Simrit Kaur

Course Outline
MBA-FT, 2010
Economic Environment of Business
Faculty of Management Studies

1. Introduction and National Income Accounting

Measuring Gross Domestic Production; Relationship between Fiscal Deficit and
Balance of Payment Deficit; Inflation and Price Adjustment; Comparisons Over-Time.

2. Macroeconomic Ideas
Macroeconomic Controversies: Classical Macroeconomics, the Keynesian Revolution,
Modern Developments.

3. Macro Economic Theory

Consumption Function and Aggregate Demand; The Multiplier; The Full Employment
Budget Surplus; Investment Function; Integration of Real and Monetary Relationship in
IS-LM Framework; Determination of Rate of Interest; Monetary and Fiscal Policies;
Fiscal Policy and Crowding Out; A Formal Treatment of the IS-LM Model; The
Composition of Output and the Policy Mix.

4. Aggregate Supply, Unemployment and Inflation

Inflation and Employment: The Classical, Keynesian and Moderate Monetarist View;
Postscript: The Importance of Expectations; The Supply Side Policies.

5. International Linkages
The Balance Of Payments and the Exchange Rate, The Mundell – Fleming Model with
Perfect Capital Mobility, Implications of the Same Under a Regime of Fixed and
Flexible Exchange Rates.

6. Structural Adjustment
The Debt Crisis of 1991; Economic Reforms and Growth; Trade, Industrial and
Financial Policy Reforms; Market Failure versus Non–Market Failure; Privatization,
Disinvestment and Exit Policy; Economic Freedom; Trade-Offs Between Efficiency
and Equity – Static and Inter-temporal; Reforms in Foreign Investment Policies; Capital
Account Convertibility and its Implications; Recent Fuel, Financial and Food crisis.

References

1. Ahluwalia, M., Little I.M.D., & V. Joshi (1999), India’s Economic Reforms and
Development -- Essays in Honour of Dr. Manmohan Singh, Oxford University Press.
2. Bardhan, P. (2003), Poverty, Agrarian Structure and Political Economy in India,
Oxford University Press, New Delhi.
3. Basu, Kaushik (2005), India’s Emerging Economy: Performance and Prospects in
the 1990s and Beyond, Oxford University Press.
4. Bhalla, A.S. (2001), Market or Government Failures, Palgrave, New York.
5. Blanchard, Olivier (2008), Macroeconomics, Prentice Hall.

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6. Bosworth Barry, Susan M. Collins & Arvind Virmani, (2007), Sources of Growth in
the Indian Economy, NBER Working Papers 12901, National Bureau of Economic
Research, Inc, revised.
7. Chakravarty, S. (1987), Development Planning – The Indian Experience, Oxford:
University Press
8. Dornbush R, & S Fisher (2005), Macroeconomics, Sixth edition , Tata Mc Graw Hill.
9. Farmer, Roger E.A. (2002), Macro-Economics Second Edition, Thomson South –
Western.
10. Froyen, Richard T (2001), Macroeconomics: Theories and Policies Sixth Edition,
Pearson Education.
11. Hodge, Graeme (2006), Privatization and Market Development, Edward Elgar.
12. Jalan, B. (1996), India’s Economic Policy – Preparing for the 21st Century, Viking
Publishers.
13. Kaur, Simrit (2003), Privatization and Public Regulation: The Indian Experience
Macmillan India.
14. Krueger, Anne (2003), Economic Policy Reforms and the Indian Economy, Oxford
University Press, India.
15. Mankiw, Gregory (2003), Macroeconomics, Fifth Edition, Worth Publishers.
16. Mankiw, Gregory, N (2003), Principles of Economics, Second edition Harcourt
College Publishers.
17. Rangarajan, C. & Dholakia (1991), Principles of Macroeconomics, Tata McGrawHill
Publishers.
18. Reddy, Y. V. (2004), Lectures on Economic and Financial Sector Reforms, Oxford
University Press.
19. Rodrik, Dani and Arvind Subramanian (2004), From Hindu Growth to Productivity
Surge: The Mystery of the Indian Growth Transition, IMF Working Paper No
WP/04/77.
20. Sachs J.D, A. Varshney and N. Bajpai (1999), India In The Era Of Economic
Reforms, Oxford University Press.
21. Sen, Amartya and Jean Dreze (2006), India: Development and Participation, Oxford
University Press, India.
22. Srinivasan,T.N, (1999), Eight Lectures on India’s Economic Reforms, Oxford
University Press.
23. Taylor, L. (1989), Varieties of Stabilization Experience, Oxford Clarendon Press.
24. Tendulkar Suresh and T. A. Bhawani (2007), Understanding Reforms, Oxford
University Press, India.
25. Vaidyanathan A and K.L. Krishna (2007), Institutions and Markets in India's
Development, Oxford University Press, India

In addition, students are advised to read the Economic Survey and articles in the Economic
Times and Financial Express in consultation with the teachers. Articles in the Economic &
Political Weekly are very useful. More recent readings will be circulated in the class.

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