INTERMEDIATE MACROECONOMICS - I


Course Description

This course introduces the students to formal modeling of a macro-economy in terms of analytical tools. It discusses various alternative theories of output and employment determination in a closed economy in the short run as well as medium run, and the role of policy in this context. It also introduces the students to various theoretical issues related to an open economy.

Course Outline

1. Aggregate Demand and Aggregate Supply Curves

Derivation of aggregate demand and aggregate and supply curves; interaction of aggregate demand and supply.

2. Inflation, Unemployment and Expectations

Phillips curve; adaptive and rational expectations; policy ineffectiveness debate.

3. Open Economy Models

Short-run open economy models; Mundell-Fleming model; exchange rate determination; purchasing power parity; asset market approach; Dornbusch's overshooting model; monetary approach to balance of payments; international financial markets.


THIS SECTION CONTAINS PREVIOUS YEAR PAPERS OF  INTERMEDIATE MACROECONOMICS - I.



Readings:

1. Dornbusch, Fischer and Startz, Macroeconomics, McGraw Hill, 11th edition, 2010.

2. N. Gregory Mankiw. Macroeconomics, Worth Publishers, 7th edition, 2010.

3. Olivier Blanchard, Macroeconomics, Pearson Education, Inc., 5th edition, 2009.

4. Steven M. Sheffrin, Rational Expectations, Cambridge University Press, 2nd

edition, 1996.

5. Andrew B. Abel and Ben S. Bernanke, Macroeconomics, Pearson Education, Inc.,

7th edition, 2011.

6. Errol D‘Souza, Macroeconomics, Pearson Education, 2009

7. Paul R. Krugman, Maurice Obstfeld and Marc Melitz, International Economics, Pearson Education Asia, 9th edition, 2012.

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