Macroeconomics

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Course Title                     :        Macroeconomics         

Credits                        :         3

Type                        :        Compulsory         

Pre-Requisites                :        Successful completion of the basic Microeconomics course

Term                        :        II

Year                        :        2011-12

Faculty                        :        Dr. Leena Mary Eapen        _________________________________________________________________

Introduction & Objective(s):

Course Description: Macroeconomics is the study of the behavior of the economy as a whole. It analyses the phenomena like economic growth, interest rates, inflation, unemployment, foreign exchange rates, and balance of payments. Macroeconomic issues play a central role in economic policy making. These elements also influence the behavioural conditions of the economic agents of a country. For instance, the economic well-being of households will be affected by the upward movement in the price level, and the movements of interest rates influence the investment decisions of industry. Similarly, the government policies to increase employment and output will be inter-related with the prevailing exchange rate system. Thus, a study of Macroeconomics is essential to properly understand the decisional environment of business.

Course objectives: The basic objective of this course is to understand the working of an economy, identity the major economic goals and problems - and explain the policies available to the governments and central banks to achieve these goals and solve the problems faced, given certain internal and international constraints. As the aim is to show the importance of the discipline for a better understanding of the world economy, we will use real-world examples and discuss the relationship between the concepts covered in the course and current economic issues.  The objectives in particular are:

(1) To expose the students to the fundamental principles and issues of Macroeconomic theory

(2) To explore the relationships between Macroeconomic theory and policy formulation

(3)  To examine the implications of Macroeconomic policy for corporate behavior

___________________________________________________________________________ Pedagogy: Lectures; Classroom discussions; Project Report and Presentation by students ___________________________________________________________________________

Text Book:  ‘Macroeconomics’ by Olivier Blanchard, Fifth Edition, Pearson.