School of Law and Governance

ECO 311 Economics II L T P C

(General Principles of Macro Economics)
Version1.1 4 0 0 4
Pre-requisites//Exposure
co-requisites
Semester V
Programme B.A.LL.B. (H.)

1.0. Objectives of the Course:

1. To impart basic knowledge of macroeconomic theories and principles.

2. To develop general understanding of the present macroeconomic issues.

3. To provide an idea of applying various macroeconomic models in solving key

macroeconomic problems.

2.0. Teaching Learning Methodology:

Lecture Method
Discussion Method
Presentation

3.0. Evaluation Scheme:

Continuous Assessment 30 Points
Attendance 5 Points
Midterm 15 Points
End Term 50 Points

4.0. Course Contents

MODULE-I: THE BASIC MACROECONOMIC FRAMEWORK

1. Introduction to macroeconomics.
2. What Macroeconomists study?
3. Introduction to Macroeconmic Variables and their role in the economy.
 School of Law and Governance

Recommended Readings:

1. Mankiw N. Gregory, Macroeconomics, South western, 2012, 6th edition.

2. Dornbusch R, Fischer S and Startz R, Macroeconomics, Eight Edition, Tata
McGraw Hill, New Delhi, 2002.
3. Froyen RT, Macroeconomics: Theories & Policies, Sixth Edition, Pearson
Education Asia, Delhi, 2001,Chapter 1 and 2.
4. Samuelson PA and Nordhaus WD, Economics, 19th Edition, Tata McGraw Hill,
New Delhi, 2010.

MODULE-II:MEASUREMENT OF ECONOMIC ACTIVITIES

1. Circular flow of the economy
2. The National Income Accounts, Various methods to calculate national income.
3. Nominal and Real GDP, GDP deflator, inflation

Recommended Readings:

1. Mankiw N. Gregory, Macroeconomics, South western, 2012, 6th edition.

2. Dornbusch R, Fischer S and Startz R, Macroeconomics, Eight Edition, Tata
McGraw Hill, New Delhi, 2002.
3. Froyen RT, Macroeconomics: Theories & Policies, Sixth Edition, Pearson
Education Asia, Delhi, 2001,Chapter 1 and 2.
4. Samuelson PA and Nordhaus WD, Economics, 19th Edition, Tata McGraw Hill,
New Delhi, 2010.
5. BasuKaushik (2011), “Understanding Inflation and Controlling It” Economic and
Political Weekly, October 8, vol xlvi no 41.

MODULE-III:THEORIES OF EMPLOYMENT IN CLOSED AND OPEN ECONOMY

1. The Classical Theory, concept of full employment.
2. Aggregate demand and aggregate supply.
3. Business Cycle
4. Classical and Keynesian Theories of Business Cycle, Concept of Multiplier.

Recommended Readings:
1. Mankiw N. Gregory, Macroeconomics, South western, 2012, 6th edition.
2. Dornbusch R, Fischer S and Startz R, Macroeconomics, Eight Edition, Tata
McGraw Hill, New Delhi, 2002.
3. Froyen RT, Macroeconomics: Theories & Policies, Sixth Edition, Pearson
Education Asia, Delhi, 2001,Chapter 1 and 2.

MODULE-IV:DEMAND FOR MONEY

 School of Law and Governance

1. Function of Money
2. Demand for money– Transaction Demand, Precautionary Demand, Speculative Demand
for Money.
3. Baumol- Tobin Model of money demand

Recommended Readings:

1. Dornbusch R, Fischer S and Startz R, Macroeconomics, Eight Edition, Tata McGraw

Hill, New Delhi, 2002
2. Froyen RT, Macroeconomics: Theories & Policies, Sixth Edition, Pearson Education
Asia, Delhi, 2001
3. Mankiw N. Gregory, Macroeconomics, South western, 2012, 6th edition.

MODULE-V:THE SUPPLY OF MONEY AND BANKING SYSTEM

1. Supply of money – Narrow Money & Broad Money (M1,M2,M3,M4)
2. Central Bank, Functions of Central Bank,
3. Commercial Bank – Functions of Commercial Bank
4. Credit Creation & Credit Control (CRR,SLR,REPO,REV.REPO)

Recommended Readings:

1. Ahuja H.L., Advanced Economic Theory, 17th edition, S. Chand & Company.
2. www.rbi.org.in
3. Dutt and Sundaram, Indian economy, S. Chand and Company

MODULE-VI:MONETARY AND FISCAL POLICIES

1. Monetary policy, Objectives and Instruments
2. Fiscal Policy – Objectives and Instruments, Crowdingout Effect and Its Importance.
3. Macroeconomic Dimensions of Fiscal Policy in Developing Countries.
4. Nexus Between Good Governance And Economic Development.

Recommended Readings:

1. Dornbusch R, Fischer S and Startz R, Macroeconomics, Eight Edition, Tata McGraw

Hill, New Delhi, 2002
2. Froyen RT, Macroeconomics: Theories & Policies, Sixth Edition, Pearson Education
Asia, Delhi, 2001
 School of Law and Governance

3. Mankiw N. Gregory, Macroeconomics, South western, 2012, 6th edition.

MODULE-VII:Theories of Inflation

1. Definition and Economic Impact of Inflation

2. Demand –Pull Inflation and Cost Push Inflation

Recommended Readings:

1. Mankiw N. Gregory, Macroeconomics, South western, 2012, 6th edition.

2. Ahuja H.L., Advanced Economic Theory, 17th edition, S. Chand & Company.

3. www.rbi.org.in

4. BasuKaushik (2011), “Understanding Inflation and Controlling It” Economic and

Political Weekly, October 8, vol xlvi no 41.