1. Circular Flow of Income and Concepts of Macro Aggregates:
Core concepts of business cycle and phases; National Income Accounting, Three methods of measuring GDP/GNP,
concepts in open and closed economy
2. Theory of Income Determination:
Simple Keynesian Model: closed economy, concepts of consumption and investment as addition to capital stock, private
autonomous expenditure multiplier, introducing the Government – fiscal policy – Government expenditure multiplier,
Tax Rate Multiplier, Balanced Budget Multiplier, Extension: Paradox of Thrift ( Multiplier Analysis – both
mathematical and graphical methods to be discussed.)
Introduction of money and asset market: IS-LM: Fiscal policy and monetary policy, comparison of crowding out
effects.
Introduction to foreign trade : export and import multipliers
3. Inflation and Unemployment:
Concepts of inflation – demand pull and cost push, Stabilization policies, introduction to Philips curve as relation
between inflation and unemployment.
4. International Linkages:
Concepts of Balance of Payments; alternative exchange rate systems – fixed, flexible and managed float; Comparative
Advantage as basis for trade; tariff and non-tariff barriers.
Reference: Principles of Macroeconomics, Soumyen Sikdar, Chapter 7
Managerial Economics, Suma Damodaran, Chapter 15
Economics(Eleventh Edition) – Lipsey & Chrystal – chapter 22,23
Macroeconomics – Dornbusch & Fischer – Chapters 12
Economics(Sixteenth Edition) - Samuelson & Nordhaus – 34,35
5. Planning, Growth and Development :
• A brief introduction to Indian Planning system, Planning and Marketisation, Imperative and Indicative
Planning
Reference: Economic Environment of Business: S.K. Mishra and V.K. Puri
• Concepts of Growth and Development, understanding of required rate of savings through incremental capitaloutput
ratio, required money supply growth with income elasticity of money demand,
Reference: Growth and Development, A P Thirlwal
6. Economic Crisis of India in Late ‘80s and Road to Liberalization –
• Economic crisis, Economic Reforms commencing from 1991,understanding of Macroeconomic Stabilization and
Structural Reforms,
Reference: Economic Environment of Business: S.K. Mishra and V.K. Puri, Chapter 18
Indian Economy since Independence, Uma Kapila ed.
Indian Economy: Datt & Sundharam, Chapter 15,16
• Monetary and Fiscal Policy Reforms– Composition of Indian money market, Components and Instruments of
Monetary policy, Concepts and Management of Deficits,
Reference: Indian Economy: Datt & Sundharam, Chapter 51, 55
Indian Economy since Independence, Uma Kapila ed.
• New Industrial Policy and Labour Reforms –Issues of privatization, Disinvestment and divestment, industrial
sickness, labour market reforms-some conceptual issues, safety net for labour
Reference: Economic Environment of Business: S.K. Mishra and V.K. Puri, Chapter 27, 35, 44
Indian Economy since Independence, Uma Kapila ed.
Indian Economy: Datt & Sundharam, Chapter 10
• Banking and Capital Market Reforms- Banking structure in India, Banking sector reforms Composition of Indian
capital market, SEBI and Capital Market Reforms
Reference: Indian Economy: Datt & Sundharam, Chapter 51
Indian Economy since Independence, Uma Kapila ed.
Economic Environment of business: S.K. Mishra and V.K. Puri, Chapter 47
• Trade Policy Reforms –major components of trade policy reforms, idea of FEMA, current and capital account
convertibility.