INTERMEDIATE MACROECONOMICS - II
Course Description This course is a sequel to Intermediate Macroeconomics I. In this course, the students are introduced to the long run dynamic issues like growth and technical progress. It also provides the micro-foundations to the various aggregative concepts used in the previous course. Course Outline 1. Economic Growth Harrod-Domar model; Solow model; golden rule; technological progress and elements of endogenous growth. 2. Microeconomic Foundations a. Consumption: Keynesian consumption function; Fisher‘s theory of optimal intertemporal choice; life-cycle and permanent income hypotheses; rational expectations and random-walk of consumption expenditure. b. Investment: determinants of business fixed investment; residential investment and inventory investment. c. Demand for money. 3. Fiscal and Monetary Policy Active or passive; monetary policy objectives and targets; rules versus discretion: time consistency; the government budget constraint; government debt and Ricardian...