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IES/ISS: General Economics-II Syllabus

GENERAL ECONOMICS-II

1. Economic Thought: Mercantilism Physiocrats, Clasical, Marxist, Neo-classical,Keynesian and Monetarist schools of thought.

2. Concept of National Income and Social Accounting: Measurement of NationalIncome, Inter relationship between three measures of national income in the presenceof the Government sector and International transactions. Environmental considerations,Green national income.

3. Theory of employment, Output, Inflation, Money and Finance: The Classical theoryof Employment and Output and Neo classical approaches. Equilibrium, analysis underclassical and neo classical analysis. Keynesian theory of Employment and output.Post Keynesian developments. The inflationary gap; Demand pull versus cost pushinflation, the Philip’s curve and its policy implication. Classical theory on Money,Quantity theory of Money. Friedman’s restatement of the quantity theory, the neutralityof money. The supply and demand for loanable funds and equilibrium in financialmarkets, Keynes’ theory on demand for money.

4. Financial and Capital Market: Finance and economic development, financialmarkets, stock market, gift market, banking and insurance. Equity markets, Role ofPrimary and Secondary markets and efficiency, Derivatives markets; Futures andoptions.

5. Economic Growth and Development: Concepts of Economic Growth andDevelopment and their measurement: characteristics of less developed countries andobstacles to their development – growth, poverty and income distribution. Theories ofgrowth: Classical Approach: Adam Smith, Marx and Schumpeter – Neo classicalapproach; Robinson, Solow, Kaldor and harrod Domar. Theories of EconomicDevelopment, rostow, Rosenstein-Roden, Nurske, Hirschman, Leibenstien and ArthurLewis, Amin and Frank (Dependency school) respective role of the state and themarket. Utilitarian and Welfariest approach to social development and A K Sen’scritique. Sen’s capability approach to economic development. The HumanDevelopment Index. Physical quality of Life Index and Human Povery Index.

6. International Economics: Gains from International Trade, Terms of Trade, policy,international trade and economic development – Theories of International Trade;Ricardo, Haberler, Heckscher-Ohlin and Stopler-Samuelson – Theory of Tariffs –Regional Trade Arrangements.7. Balance of Payments: Disequilibrium in Balance of Payments, Mechanism ofAdjustments, Foreign Trade Multiplier, Exchange Rates, Import and Exchange Controlsand Multiple Exchange Rates.

8. Global Institutions: UN agencies dealing with economic aspects, World Bank, IMF and WTO, Multinational Corporations.