MEAP-MB16

MEAP-MB16
MBA 2016-18: Term-II

Course Name

Credits	3
Faculty Name	Dr Debabrata Datta
Program	MBA(Sec-C & D)
Academic Year and Term	2016-17 Term-II

1. Course Description
The course on Macroeconomic Principles and Policies introduces the concept of an aggregate economy, its working and problems. The course analyses the interdependence of the product market, the money market and the labour market and the possibility of emergence of macroeconomic problems like unemployment, inflation and balance of payment disequilibrium. The course examines the role of the government and Central Bank in reducing macroeconomic problems and in ensuring stable economic growth.

2. Student Learning Outcomes (typically 3-5 bullet points)
· Be able to understand the basic theories of Macroeconomics and sectoral inter-linkages in an economy. Students will learn various macroeconomic terminologies, like GDP, economic growth, inflation, fiscal and current account deficit etc.
· Be able to understand and analyze current macroeconomic issues of Indian economy and the global economy.

· Be able to apply the macroeconomic knowledge at the practical level.

· Will have the groundwork on Macroeconomics, which is essential for facing many business situations and taking appropriate decisions.

3. Required Text Books and Reading Material

Main text book

1. Blanchard O. Macroeconomics, Pearson Education, 4th Edition
Reference books
1. Dornbusch Rudiger, Fischer Stanley and Startz Richard, Macro Economics, 9^th Edition, Tata McGraw-Hill.
2. Richard T. Froyen: Macroeconomics, 8^th Edition, Pearson Education
3. Roy, Shyamal (2012, 2nd Edition), Macroeconomic Policy Environment, Tata McGraw Hill
4. Gordon R. Macroeconomics, PHI
5. Economic news papers like, Economic Times, Business Line, Business Standard, Mint etc.
6. News paper and research articles and news paper reports will be suggested during the course of the session. A few caselets may be discussed in the classes.

4. Tentative Session Plan

Session Number Topics/Activities Reading/case list etc.

1-2 Macroeconomics as a part of Economics. Circular flow of Income. National Income
Accounting: concepts and measurements of National Income.
Blanchard – ch 3, Appendix 1
Dornbusch et al - Ch 1
Gordon –Ch 2

3-5 Income determination in macro setup: Short run models; Goods market Blanchard – Ch 3
Dornbusch et al - Ch 9

6-7 Financial market. Demand and supply of money. Blanchard – Ch 4
Dornbusch et al - Ch 10

8-10 Goods and money market. IS-LM Model. Monetary and fiscal policies. Blanchard – Ch 5
Dornbusch et al - Ch 11
Gordon – Ch 4

11 Introduction of labour market. Introducing concept of aggregate supply. Blanchard – Ch 6
Dornbusch et al - Ch 6

12-14 Price flexibility in the medium run. AS – AD model. Demand and supply shock Blanchard – Ch 7
Dornbusch et al - Ch 5

15 Money and Inflation: Inflation – concept, measurement and effects. Blanchard – Ch 8
Dornbusch et al - Ch 7

16-17 Concept of Phillips curve and stagflation. Adaptive and rational expectation
Hypothesis, Taylor Rule. Three equations model. Blanchard – Ch 8
Dornbusch et al - Ch 7
Karlin and Soskice –Macroeconomics OUP.

18-19 Income determination in an open economy. Trade Balance, Policy dilemma.
Exchange rates determination & foreign exchange market. Blanchard – Ch 18
Dornbusch et al - Ch 12

20 Long run economic growth. Harrod and Neo classical growth model - rudimentary ideas. Dornbusch et al - Ch 3

7. Evaluation –

End term – 40%

Quiz and short questions – 35%

Group Projects – 20%

Classroom participation – 5%

6. Academic Integrity

Created By: Alora Kar on 09/12/2016 at 12:08 PM
Category: BM-I 2016-18 T-II Doctype: Document

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Session Number	Topics/Activities	Reading/case list etc.
1-2	Macroeconomics as a part of Economics. Circular flow of Income. National Income Accounting: concepts and measurements of National Income.	Blanchard – ch 3, Appendix 1 Dornbusch et al - Ch 1 Gordon –Ch 2
3-5	Income determination in macro setup: Short run models; Goods market	Blanchard – Ch 3 Dornbusch et al - Ch 9
6-7	Financial market. Demand and supply of money.	Blanchard – Ch 4 Dornbusch et al - Ch 10

8-10	Goods and money market. IS-LM Model. Monetary and fiscal policies.	Blanchard – Ch 5 Dornbusch et al - Ch 11 Gordon – Ch 4
11	Introduction of labour market. Introducing concept of aggregate supply.	Blanchard – Ch 6 Dornbusch et al - Ch 6
12-14	Price flexibility in the medium run. AS – AD model. Demand and supply shock	Blanchard – Ch 7 Dornbusch et al - Ch 5
15	Money and Inflation: Inflation – concept, measurement and effects.	Blanchard – Ch 8 Dornbusch et al - Ch 7
16-17	Concept of Phillips curve and stagflation. Adaptive and rational expectation Hypothesis, Taylor Rule. Three equations model.	Blanchard – Ch 8 Dornbusch et al - Ch 7 Karlin and Soskice –Macroeconomics OUP.
18-19	Income determination in an open economy. Trade Balance, Policy dilemma. Exchange rates determination & foreign exchange market.	Blanchard – Ch 18 Dornbusch et al - Ch 12
20	Long run economic growth. Harrod and Neo classical growth model - rudimentary ideas.	Dornbusch et al - Ch 3