Close
MEAP-Q12
PGDM-HRM 2012-14: Term-II
Macroeconomic Analysis and Policy
(3.00 credit)
Faculty:
Dr. Latha Ravindran
lata@ximb.ac.in
Ext. 810
Ph. 6647810
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?
ü
Gross National Income and Product
ü
Approaches to estimating GNP
ü
Related indicators
ü
Deflating for inflation
ü
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
ü
Say’s law of markets
ü
Full employment equilibrium
ü
Critical appraisal of the model
Suggested Readings:
Samuelson & Nordhaus
Milton Spencer
Campbell and McConnell
Topic 4:
(3 sessions)
Macroeconomic models – the Contemporary Approach
ü
Effective demand
ü
Consumption function
ü
Investment function
ü
Multiplier and accelerator
ü
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?
ü
Phases of business cycles
ü
Business cycle theories
ü
Case analysis of various phases of business cycles
Suggested Readings:
Samuelson & Nordhaus
Poindexter
Topic 6:
(2 sessions)
The Twin Traps: Inflation and Unemployment
ü
Inflation: Measures
ü
Inflation: Causes, Consequences and Cures
ü
Unemployment: Types and methods of measurement
ü
Unemployment or Inflation – the Phillip’s Curve
ü
Unemployment and Inflation – The Supply Shock
ü
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
ü
Money: Definition, evolution, functions and composition
ü
Principles behind the issue of paper currency
ü
Functions of commercial banks
ü
Role of central bank
ü
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?
ü
Economic scope and functions of governments
ü
Social goods and redressal of spill over effects
ü
Fiscal policy: their efficacy and implications
ü
Sources of revenue: where does the money come from?
ü
Public expenditure: where does the money go?
ü
Taxation and shifting and incidence
ü
Budget at a glance: learn to read in between lines
ü
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
ü
Theories of absolute and comparative advantage
ü
Balance of Payments in a double entry book-keeping sense
ü
Measures to check imbalances in Balance of Payments
ü
Tariff and non-tariff barriers - their purpose and implications
ü
A case on voluntary export restraint
Suggested Readings:
Lindert
Adrian Perry
Campbell & McConnell
Milton Spencer
Bo Sodersten
(
Please note:
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%
Mid-term Examination
25%
End-term Examination
30%
Term paper (Group)
10%
The Submission deadlines for the term paper:
For the selection of a topic:
17:00 hrs
Friday, the 12th October 2012
For the submission of synopsis:
17:00 hrs
Friday, the 9th November 2012
For the final submission of term paper:
17:00 hrs
Friday, the 7th December 2012
Created By:
Debasis Mohanty
on
08/29/2012
at
02:19 PM
Category
:
PGDM(HRM)-I
Doctype
:
Document
...........................