NARSEE MONJEE INSTITUTE OF MANAGEMENT STUDIES (NMIMS), Mumbai

Course outline for Macroeconomics Economics

MBA Capital Markets - Trimester II
2007-08

Objective

The broad objectives of the course are:

 To provide with a fundamental knowledge of the macroeconomics and
macroeconomic policies
 To identify the macroeconomic forces that affect business organizations

Session Plan /Scope

Session Topics

Introduction to Macroeconomics
1. Central Issues in macroeconomics, Introduction to macroeconomic fluctuation, concept
of business cycles; Indian Economic Databases

Introduction to National Income Accounting

2 & 3. Concepts of National Income, GDP, GNP, NI; Methods of NIA and various problems;
Personal income, Disposable income; GDCF, depreciation; Investment

Determination of equilibrium income: Simple Keynesian Model

4. Equilibrium income determination, Introduction to Keynesian framework, concept of
multiplier theory, etc.

Introduction to ISLM framework

5 & 6. Real sector & Financial Sector of the economy; real sector – commodities market
equilibrium, IS- curve, slope & shift, introduction to fiscal policy instruments

Financial Market – Money market & capital market,

6 & 7. Demand for money & Supply of money, Credit creation by central bank;
Introduction to monetary policy

Inflation & Unemployment

8 & 9. Concepts, measurement; issues involved
Inflation – unemployment trade off; AD-AS framework, policy implications

Balance of Payments – components & implications, current account deficit

9 & 10.
Open economy macroeconomics – Internal Balance & External balance (basics)

Exchange rate management –

10. Determination of exchange rate, exchange rate reserves, Real Effective exchange rate
(REER), Forex management

1
Evaluation Pattern

 Group Project 30%

Submission of Brief outline of the project (End of session 4)
Report Submission & presentation (End of session 9)

 Group Assignment 20%

 End-term Exam 50%

ASSIGNMENT

 Group assignment
 The Group should be prepared with the assignment before the starting of the lecture
(hard copy & soft copy)
 The Group will make a PowerPoint presentation on one particular assignment at the
BEGINNING of the lecture for 15 minutes only.
 The Group is required to circulate their Assignment to all other Groups in the class

PROJECT

 Select any of the topics provided to you & prepare a project report that should broadly
cover the following points:

o Introduction to the topic: Basic concepts involved in it

o Literature Survey
o Relevance of the topic in the present day context
o Description & Explanation of the topic in hand
o Policy implications for India
o Group suggestion & insights (Mandatory)

 Report should be strictly less than 3000 words. Use 1.5 line-spacing with font
size11.

Suggested reading At least One business daily (Economic Times, Business Standard, Business
Line, Financial Express)

References:
1. Dornbusch, Fischer & Startz, Macroeconomics
2. G Mankiw, Macroeconomics
3. Oliver Blanchard, Macro Economics
4. Uma Kapila (ed.), Indian Economy since Independence
5. Misra & Puri, Indian Economy

Dipankar De
Tel: 98194 66605 (M); E-mail: dipankar75@gmail.com