Syllabus (ECONOMICS)

Course Type: MAJ-12

Semester: 7

Course Code: BECOMAJ12T

Course Title: Advanced and Applied Macroeconomics

(L-P-Tu): 5-0-1

Credit: 6

Practical/Theory: Theory

Course Objective:

Learning Outcome: Course Objective: The paper prepares to create special skills of the students over macroeconomic theories. The further developed issue on disequilibrium macroeconomics and modern growth models are discussed with most up to date manner. Course Specific Out

1. Disequilibrium Models, Rational Expectations Theory & New Keynesian Macroeconomics:(30)

5. Disequilibrium Models

• Patinkin,
• Clower and
• Barro-Grossman.

5. The Rational Expectations Theory

• Meaning
• Differences with Adaptive Expectations.

5. The Lucas Imperfect Information Model,

• Implications and Limitations
• The Phillips Curve and Lucas critique

5. Mundell-Fleming versions under fixed and flexible exchange rates
5. World capital Market equilibrium.

2. The Solow-Swan Model & International Financial Markets and Crises: (30)

• Steady-state equilibrium

• Golden Rule of capital accumulation
• Impact of technological progress
• Absolute versus conditional convergence
• Neutrality of Technical Progress and
• Returns to scale-different types of technological progress

5. Integration and efficiency of international financial markets,
5. Modigliani- Miller Theorem –leverage and cost of bankruptcy

3. Modern Theory of Growth & Exchange Rate and Capital Flow: (30)

5. Dissatisfaction with neoclassical theory

5. One sector models of endogenous growth: the AK model
5. Endogenous growth and human capital formation: the Lucas model
5. Endogenous growth and R&D- Romer model.

5. Alternative exchange rate regimes-an overview;
5. Capital flow to developing countries and its macroeconomic implications;
5. Some useful models of exchange rate dynamics

Reading References:

1. Dasgupta D.,1998, The Macro Economy : A Text Book View, Oxford University Press, New Delhi.
2. Dornbusch, R. 1980, Open Economy Macroeconomics, Cambridge University Press.
3. Barro, R.I. and Grossman, H.I., 1971, “A General Disequilibrium Model of Income and Employment”, American Economic Review, March,Vol. 61(1):82-93.
4. Mueller, M.G., 1978, Readings in Macroeconomics, Surjeet Publications, New Delhi.
5. Blaug, M., 1978, Economic Theory in Retrospect, Cambridge University Press.
6. Ackley, G.,1978, Macroeconomics: Theory and Policy, Macmillan, New York.
7. Rakshit, M., 1987, Money, Credit and Monetary Policy, SBI Lectures.
8. Levacic, R. and Rebman, A., 1986, Macroeconomics; 2^nd Edition, Macmillan.
9. Froyen, R.T., 2007, Macroeconomics: Theories and Policies, 8^th Edition, Pearson Education.
10. Sen, A. 1960, Growth Economics, Harmonds worth, Penguin Books.
11. Romer, D., 2001, Advanced Macroeconomics, McGraw-Hill International Edition.
12. Mankiw, N.G. and D. Romer, 1991, New Keynesian Economics, 2 volumes, MIT Press, Cambridge.
13. Romer, D., 2001, Advanced Macroeconomics, McGraw-Hill International Edition.
14. Lucas, R.E Jr., 1988, “On the Mechanics of Economic Development”, Journal of Monetary Economics, 22 (July): 3-42.