KUK - LMS

Syllabus

MODULE NO / UNIT	COURSE SYLLABUS CONTENTS OF MODULE	NOTES
Course Code: M-BECOC- 007 Course Name: Macro Economic Analysis-II
1	Theory of Demand for money Classical Approach to Demand for Money – Quantity Theory Approach; Fisher’s equilibrium; Cambridge Quantity theory; Keynes Liquidity Approach – Transaction; Precautionary and Speculative Demand for Money; Post Keynesian approaches to demand for money: Tobin (Portfolio balance approach), Baumol (Inventory theoretic approaches), Friedman (Restatement of quantity theory of money), Patinkin’s real balance effect; Akerlof and Milbourne (A-M) model; Miller-Orr model. Reading List • Mankiw, Gregory N. (2003). Macroeconomics. Worth Publishers. • Romer, David (2012). Advanced Macroeconomics. McGraw Hill Education.v • Levacic, Rosalind & Rebmann, Alexander (2015). Macroeconomics. Macmillan, London. • Mishkin, F.S. (2016). The Economics of Money Banking and Financial Markets. Pearson. • Bain, K. & Howells, P. (2009). Monetary Economics: Policy and its Theoretical Basis. Macmillan International Higher Education. • Handa, Jagdish (2000). Monetary Economics. Routledge, London.
2	Theory of Demand for money Classical Approach to Demand for Money – Quantity Theory Approach; Fisher’s equilibrium; Cambridge Quantity theory; Keynes Liquidity Approach – Transaction; Precautionary and Speculative Demand for Money; Post Keynesian approaches to demand for money: Tobin (Portfolio balance approach), Baumol (Inventory theoretic approaches), Friedman (Restatement of quantity theory of money), Patinkin’s real balance effect; Akerlof and Milbourne (A-M) model; Miller-Orr model. Reading List • Mankiw, Gregory N. (2003). Macroeconomics. Worth Publishers. • Romer, David (2012). Advanced Macroeconomics. McGraw Hill Education. • Levacic, Rosalind & Rebmann, Alexander (2015). Macroeconomics. Macmillan, London. • Mishkin, F.S. (2016). The Economics of Money Banking and Financial Markets. Pearson. • Bain, K. & Howells, P. (2009). Monetary Economics: Policy and its Theoretical Basis. Macmillan International Higher Education. • Handa, Jagdish (2000). Monetary Economics. Routledge, London.
3	Theory of Inflation Classical, Keynesian and Monetarist approaches; Structuralist theory of inflation; Philips curve analysis – Short run and long run Philips curve; Natural Rate of Unemployment hypothesis; Modified Philips curve - Tobin, Samuelson-Solow Theory of Business Cycles Business Cycle Theories of Kaldor, Samuelson, Hicks, and Kalecki; Control of business cycles – relative efficacy of monetary and fiscal policies. Reading List • Gali, J. (2015). Monetary Policy, inflation and Business Cycles. Princeton University Press. • Lucas, R.E. (1983). Studies in Business Cycle Theory. MIT Press. • Mankiw, Gregory N. (2003). Macroeconomics. Worth Publishers. • Mishkin, F.S. (2016). The Economics of Money Banking and Financial Markets. Pearson. • Frisch, H. (1983). Theories of Inflation. Cambridge University Press. • Gali, J. (2015). Monetary Policy, inflation and Business Cycles. Princeton University Press.
4	Open Economy Macroeconomics Balance of Payment Disequilibrium and Equilibrium; Real and Nominal Exchange Rates; Dornbush Exchange rate Overshooting Model; Mundell- Fleming Model under Fixed and Flexible Exchange Rates. Recent Developments Role of Expectations in Economics; Adaptive Expectation hypothesis; New Classical Macroeconomics: Rational Expectation Hypothesis, Policy Ineffectiveness, Lucas Supply Curve. Reading List • Jha, R. (1991). Contemporary Macroeconomic Theory and Policy. Wiley Eastern Limited. • Mankiw, Gregory N. (2003). Macroeconomics. Worth Publishers. • Romer, David (2012). Advanced Macroeconomics. McGraw Hill Education. • Romer, D. & Mankiw, N. Gregory (1995). New Keynesian Economics (Volume-2). MIT Press. • Sheffrin, Steven M. (1996). Rational Expectations. Cambridge University Press • Galbacs, Peter (2015). The Theory of New Classical Macroeconomics: A Positive Critique. Springer.