Macro Economics and Growth -PGDFM

Course Name: Macroeconomics and Growth

Course Objectives

• Develop a macro-economic perspective
• Acquire knowledge of economic environment of a nation and the role of government in the economy
• To develop a basic understanding of macroeconomic stability and its importance to develop an ability to understand macroeconomic policies and their likely impacts;
• To appreciate the challenges to government decision-making in a globalized world to gain an understanding of the linkages between economic policies and financial constrain.

Course Outcomes

CO1: Understand the theoretical and conceptual knowledge of macroeconomics.  Understand the preliminary concepts associated with the determination and measurement of aggregate macroeconomic variable like savings, investment, GDP, money, inflation, and the balance of payments [PO1(3) PO2(3) PO5(2) PO9(3)].

CO2: Demonstrate a firm knowledge of the interrelationships among consumers, government, business and the rest of the world in Indian macro-economy [PO3(3) PO4(2) PO6(3) PO7(2)].

CO3: Learn fiscal and monetary policy decisions to counter economic problems by using macro-economic instruments; develop the ability to distinguish the functions of these tools in controlling inflation, regulating money supply, and promoting economic growth. It also help to the students to understand various financial crisis and policy in other countries which will be needful for sustainable resources [PO8(3) PO10(2)].

Course Syllabus

• The Great Depression, its causes and remedies, the fall of (neo) classical macroeconomics and the Say‘s Law, the rise of Keynesianism, interpretations of Keynesian macroeconomics, the Phillips Curve
• Stagflation, its causes and remedies, the fall of Keynesianism, the rise of Monetarism and Rational Expectations, the Lucas Critique, the role of money supply and expectations, supply side economics, the natural rate of unemployment
• The Recession of 2007 onwards, causes and remedies, power of finance and wars in macroeconomics, international trade and finance mechanisms, differences in the experiences of USA, Europe and China
• The sustained rise of China, causes of rapid economic growth, complete eradication of poverty, role of institutions, human capital, innovations, meritocratic and responsive governance, Confucianism, and the
  principle of harmony etc. Prospects and problems facing the Chinese economy. Does the rise of China pose a threat to others? Perceptions of China in Africa and Asia
• The strengths of and problems facing the economy of the USA: Slowdown of American growth, vanishing middle class, stagnation in the income of the bottom 50% of the population for the past 4 decades, vanishing
  (?) ―American Dream‖, the mathematics and innovation problem, dominance of the armaments producing sector and the finance sector, challenges to American dominance and hegemony
• Hands on Session-Fiscal Performance Index of States in India, Monthly Economic Index in Odisha, Banking Index of Odisha : A Comparison

Suggested Textbooks

1- Froyen, R. T., 'Macroeconomics', Theories and Policies, Pearson

2- Mankiw, G. N.,'Macroeconomics', Worth publishers

3-https://www.indiabudget.gov.in/

4-https://data.worldbank.org/?intcid=ecr_hp_BeltD_en_ext

Session Plan

Session-1

The Great Depression

AnjaliDash_OFS_Great depression

Session-2

Classical macroeconomics

AnjaliDash_OFS_Say's Law

Session-3

Keynesian theory of macroeconomics

Keynesian unemployment basic

Session-4

The Phillips Curve

Phillips curve New

Session-5

Mini Project cum Case Study: Economic Growth since The Great Depression (1929-1930). Students will select different different country and will find the the causes, impact and remedies of The Great Depression. Are there any further more economic crisis face by that selected country?

Session-6

Stagflation

https://www.investopedia.com/terms/s/stagflation.asp

The rise of Monetarism and Rational Expectations

rational expectations and policy

Session-7

The Lucas Critique

lucas_critique

The role of money supply and expectations

https://www.investopedia.com/terms/m/moneysupply.asp

https://www.imf.org/en/Publications/fandd/issues/Series/Back-to-Basics/Monetary-Policy

Session-8 to 11

The Recession of 2007 onwards, causes and remedies, power of finance and wars in macroeconomics

https://drive.google.com/file/d/1h5p-xOBJrIDHG2Q9YEAvUtZUJgRR_d_X/view?usp=share_link

https://www.investopedia.com/articles/economics/09/financial-crisis-review.asp

Quiz : International trade and finance mechanisms, differences in the experiences of USA, Europe and China

BUSINESS CYCLE

https://www.wto.org/english/thewto_e/coher_e/challenges_e.htm

Session-12

Presentation by students

Session-13

Perceptions of China in Africa and Asia on economic growth

Session-14

Project : Analysis of macro indicators of India in comparison with China and USA economy

Session-15 to 17

The strengths of and problems facing the economy of the USA

https://www.coface.com/Economic-Studies-and-Country-Risks/United-States-of-America

https://www.whitehouse.gov/wp-content/uploads/2022/04/Chapter-3-new.pdf

Session-18

Group discussion on Stagnation in the income among poorer class

Session-19

Presentation on project

Session-20

Doubt clearance