Course 004 : Macroeconomic Theory
The objective of the course is to familiarise the students with (a) the concepts and issues in modern macroeconomics – as is applied in theory and practice across the world; (b) the major mathematical tools used in modern macro analyses.
The course has three modules. The first module focuses on static models to analyses short run issues (e.g. current employment, current output, current rate of interest, current price level). These models take many of the time dependent variables (e.g, capital stock, population) as given and then analyse the effectiveness of various policies under alternative assumptions. The second module moves away from the static models and explicitly looks at the price dynamics. This module will use dynamic techniques to analyse how the price dynamics (inflation) responds to policy changes under alternative schools of thoughts. The third module again moves away from the static models but focuses on growth dynamics (assuming prices to be constant). This module will use dynamic techniques to analyse how the aggregate as well as per capita GDP growth rates respond to policy changes under alternative schools of thoughts.
Mode of Evaluation
2 midterms (of 15 marks each) be held during the semester.
A final examination (of 70 marks) will be held at the end of the semester.
Tuesdays: 3-4 pm; Fridays: 3-4 pm