Programme

PGPX

Term

II

Academic Year

2021-22

Course title

Open Economy Macroeconomics

Area

Economics

Credits

0.75

Instructor(s)

Prof. Abhiman Das

Course Description & Objectives

Objectives: This course is intended to present an understanding of the functioning of the aggregate economy. It will introduce the students to the definition and measurement of aggregate variables such as national income, inflation, unemployment, balance of payments and the exchange rate. It will also outline conceptual frameworks that seek to explain how these macroeconomic aggregates are determined. The course will explore the role of government policy in determining macroeconomic outcomes. Should the government intervene in the economy? Under what conditions is such intervention effective or meaningful? In this context, the course will explore and examine the role of government and central bank with reference to the fiscal, monetary and foreign exchange rate polices. In particular, it will examine the current issues for economic growth and inflation in India, interdependence of the international economy, and the influence of global macroeconomic developments on the domestic economy. In a nutshell, it provides a perspective for managers: To the notion of the macro economy as being more than the mere aggregation of the output of individual actors. As regards the effects of and motivations in pursuit of particular stances and policies by central banks and governments; bringing out the competing view points of the Keynesian, monetarist and new-classical schools. To better appreciate the fiscal, monetary and exchange rate and credit policies, and the options in policy that central bankers and governments have.

Pedagogy

Lectures, class discussions and presentations