MEAP-H16

MEAP-H16
MBA (HRM) 2016-18 : Term-II

MACRO ECONOMIC ANALYSIS & POLICY

COURSE OUTLINE

No. of Sessions: 20

Duration per session: 90 mts.

No. of Credits: 3 (Core)

Faculty: Prof. LATHA RAVINDRAN

Email: lata@ximb.ac.in

Office at XIMB Campus Ext.: 810

I Course Objectives:

With the basic understanding of the theories of firms (that deal with the issues operational within the firms), this course is designed to make a systematic coverage of fundamental concepts and relationships that exist among various macro-economic entities. This course provides a basic understanding of the theories and principles relating to the macro-economic environment (that deal with the external or environmental issues operating outside the firms). The course focuses primarily on how an economy functions, the reasons for macro-economic fluctuations and the corrective and regulatory measures from various spheres such as monetary, fiscal and international arena.

The major purpose of the course is to enable the management students to develop a familiarity with the fundamentals of macro-economic principles; understand the complexity and implications of fluctuations in macro-economic entities; and relate the nuances found in various theories and models to real life business environment.

II Course Contents:

Topic 1: (1 session)
Introduction
ü What does the subject matter of economics deal with?
ü Resources of an economy
ü Two-sector model of circular flow of economic activities
ü Goals of an economy
ü Challenges to achieve the goals

Suggested Readings:

Milton Spencer

G.L. Bach

Michael Veseth

Topic 2:

(4 sessions)

Overview: How do we measure an economy’s progress?

Gross National Income and Product

Approaches to estimating GNP

Related indicators

Deflating for inflation

Is GNP a measure of society’s well being?

Suggested Readings:

Milton Spencer

Campbell and McConnell

Adrian Perry

G.L. Bach

Topic 3:

(1 session)

Macroeconomic models – the Classical Approach

Say’s law of markets

Full employment equilibrium

Critical appraisal of the model

Suggested Readings:

Samuelson & Nordhaus

Milton Spencer

Campbell and McConnell

Topic 4:

(3 sessions)

Macroeconomic models – the Contemporary Approach

Effective demand

Consumption function

Investment function

Multiplier and accelerator

Determination of rate of interest

Suggested Readings:

Samuelson & Nordhaus

Milton Spencer

Campbell and McConnell

Slovin & Sushka

Duncan Reekie

Topic 5:

(4 sessions)

Business Fluctuations: What and Why?

Phases of business cycles

Business cycle theories

Case analysis of various phases of business cycles

Suggested Readings:

Samuelson & Nordhaus

Poindexter

Topic 6:

(2 sessions)

The Twin Traps: Inflation and Unemployment

Inflation: Measures

Inflation: Causes, Consequences and Cures

Unemployment: Types and methods of measurement

Unemployment or Inflation – the Phillip’s Curve

Unemployment and Inflation – The Supply Shock

Case analysis on the twin traps

Suggested Readings:

Baumol & Blinder

Samuelson & Nordhaus

Heyne & Johnson

Edwin Mansfield

G.L. Bach

Topic 7:

(3 sessions)

Money, Banking, Creation and Control of Credit

Money: Definition, evolution, functions and composition

Principles behind the issue of paper currency

Functions of commercial banks

Role of central bank

Measures of credit control

Suggested Readings:

Campbell & McConnell

Adrian Perry

Baumol & Blinder

Milton Spencer

Chisholm & McCarty

Edwin Mansfield

Topic 8:

(1 session)

Role of Government – How much should a Government do?

Economic scope and functions of governments

Social goods and redressal of spill over effects

Fiscal policy: their efficacy and implications

Sources of revenue: where does the money come from?

Public expenditure: where does the money go?

Taxation and shifting and incidence

Budget at a glance: learn to read in between lines

Fiscal deficits and its policy implications

Suggested Readings:

Adrian Perry

Baumol & Blinder

Samuelson & Nordhaus

Milton Spencer

Campbell & McConnell

Topic 9:

(1 session)

International trade and Balance of Payments

Theories of absolute and comparative advantage

Balance of Payments in a double entry book-keeping sense

Measures to check imbalances in Balance of Payments

Tariff and non-tariff barriers - their purpose and implications

A case on voluntary export restraint

Suggested Readings:

Lindert

Adrian Perry

Campbell & McConnell

Milton Spencer

Bo Sodersten

Please note:

Reading Materials / Reference Books:

A text book namely, “Principles of Macro Economics” by William A. McEachern & A. Indira, (Cengage Learning), is being provided to each participant for basic reference.

This is in addition to a reading material prepared by me for this course.

Besides, multiple copies of yet another text book namely, “Macroeconomics” by R. Glenn Hubbard & Anthony Patrick O'Brien (PEARSON) will be kept in the XUB library for additional reference.

Reading material and the books are prescribed for only preliminary reading, and by no means be adequate to fulfill the learning objectives of this course. For further reading, solving practical questions and problems, additional references are cited above.

Besides the text books, reading business related articles, reports and so on, published in periodicals, journals, news magazines and websites, are some of the key requirements for the course.

III Course Evaluation:

Components
Weights

Quizzes
35%

End-term Examination
45%

Term paper (Group)
20%

The Submission deadlines for the term paper:
For the selection of a topic: Friday, the 4th November 2016
For the submission of synopsis: Friday, the 18th November 2016
For the final submission of term paper: Friday, the 16th December 2016

Created By: Bijoy Kar on 09/14/2016 at 05:45 PM
Category: Course Outlines-HRM-I Doctype: Document

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Components	Weights
Quizzes	35%
End-term Examination	45%
Term paper (Group)	20%