Intermediate Macroeconomics-II

By Dr. Navitha Thimmaiah | Department of Studies in Economics and Cooperation, University of Mysore, Manasagangotri, Mysuru 570006

Learners enrolled: 529

Rationale for developing this Course:
Macroeconomics or aggregate economics analyses and establishes the functional relationship between the large aggregates. The aggregate analysis has assumed such a great significance in recent times that a prior understanding of macroeconomic theoretical structure is considered essential for the proper comprehension of the different issues and policies. Macroeconomics is not only a scientific method of analysis but also a body of empirical economic knowledge.

Course Description:

The Course equips the students to understand systematic facts and latest theoretical developments for empirical analysis.

Course Objectives:

This course helps in understanding the basic concepts and policies of macroeconomics.

The course helps the students in establishing link between macroeconomic theory and its application.

It prepares the students towards analyzing macroeconomic situations given different policy scenarios and models.

Learning Outcomes:

Ability to understand the different macroeconomic growth and development models.
Ability to understand the different concepts and theories of Macroeconomics.
Ability to understand Classical Macroeconomic Model.
Ability to analyse policy implications of various macroeconomic models.

Summary

Course Status :	Ongoing
Course Type :	Core
Language for course content :	English
Duration :	15 weeks
Category :	Humanities and Social Sciences
Credit Points :	5
Level :	Undergraduate
Start Date :	08 Jul 2024
End Date :	31 Oct 2024
Enrollment Ends :	31 Aug 2024
Exam Date :	15 Dec 2024 IST
Exam Shift :	Shift-II

Note: This exam date is subject to change based on seat availability. You can check final exam date on your hall ticket.

Page Visits

Course layout

Week	Title of Video and Reading text/Lecture/ppt
First Week	Economic growth models – Harrod model
	Domar growth model
	Solow model
	Solowian convergence
Second Week	Golden rule of accumulation
	Steady state-properties
	Endogeneous growth model by AK Sen
	Endogeneous growth model by Romar
Third Week	Policy implications of Endogeneous growth models
	Classical Macroeconomics – Assumptions
	Say’s law of markets
	Classical theory of employment
Fourth Week	Wage-cut policy
	Keynesian theory of employment – the principle of effective demand, aggregate demand and aggregate supply
	Consumption function- concepts-APC, MPC, APS, MPS
	Keynesian psychological law of consumption and its implications
Fifth Week	Determinants of consumption function
	Theories of consumption function – absolute income hypothesis
	The consumption puzzle
	Drift theory of consumption
Sixth Week	Relative income hypothesis
	Life cycle hypothesis
	Permanent income hypothesis
	Random walk hypothesis
Seventh Week	Fisher’s theory of optimal inter-temporal choice
	Investment –different types –business fixed, residential and inventory investment
	Autonomous and induced investment, MEC, investment multiplier
	Accelerator principle and super multiplier
Eighth Week	New theories of investment – accelerator theory, flexible accelerator theory, Tobin’s Q theory, Financial theory of investment
	Demand for money- classical approach (quantity theory of money- cash transactions approach)
	Quantity theory of money- cash balance approach
	The Keynesian approach (liquidity preference theory )
Ninth Week	Keynesian liquidity trap
	Post Keynesian approaches to demand for money- A) Baumol’s inventory theoretic approach
	B) Tobin’s portfolio selection model
	Monetary policy-meaning and objectives or goals
Tenth Week	Instruments of monetary policy
	Expansionary monetary policy and restrictive monetary policy
	Rules versus discretion in monetary policy
	Fiscal policy- meaning and objectives or goals
Eleventh Week	Instruments of fiscal policy
	Automatic and discretionary stabilizers
	Crowding out and fiscal policy
	Lags in effects of macroeconomic policies
Twelfth Week	Time consistency in monetary policy
	Problem of coordination of macroeconomic policy objectives – the assignment problem (Mundell and Swan model )
	Public debt-macroeconomic impact
	The government budget constraint
Thirteenth Week	The principle of Ricardian equivalence
	Classicals versus Keynesians
	Phillips curve analysis
	Adaptive expectations and stagflation
Fourteenth Week	New classical macroeconomics –rational expectations Policy implications of New classical macroeconomics
	New Keynesian Economics – difference between new classical and new Keynesians
	Sticky nominal wages – staggered wage contracts theory
	Sticky prices model - Sticky real wages

Instructor bio

Dr. Navitha Thimmaiah

Department of Studies in Economics and Cooperation, University of Mysore, Manasagangotri, Mysuru 570006

Dr. Navitha Thimmaiah possesses extensive teaching experience spanning over 20 years, specializing in areas such as Theory of Econometrics, Applied Econometrics, Research Methodology, Statistics for Economics, Mathematics for Economics, Microeconomics, and Macroeconomics. As a certified trainer and resource person, she has contributed her expertise to esteemed institutions including the Administrative Training Institute, Karnataka Police Academy, Fiscal Policy Institute, State Institute of Urban Development, and ANSSIRD.

Dr. Thimmaiah has successfully supervised 14 students in attaining their PhD degrees and has a prolific publication record, with 80 research papers featured in reputable national and international journals. Additionally, she is the author of five books, with her latest work focusing on "Applied Research Methods in Economics".

To date, Dr. Thimmaiah has completed three research projects, further showcasing her dedication to advancing knowledge in her field.

Course certificate

Assessment/Assignment marks will be considered for Internal Marks and will carry 30 percent for overall Result.

End Term Exam- will have 100 questions and will carry 70 percent of overall Result.

All students, who obtain 40% marks in in-course assessment and 40% marks in end-term proctored exam separately, will be eligible for certificate and credit transfer.

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