This course is a sequel to Intermediate Macroeconomics I. In this course, the students are introduced to the long run dynamic issues like growth and technical progress. It also provides the micro-foundations to the various aggregative concepts used in the previous course.
Harrod-Domar model; Solow model; golden rule; technological progress and elements of endogenous growth.
Consumption: Keynesian consumption function; Fisher’s theory of optimal intertemporal choice; life-cycle and permanent income hypotheses; rational expectations and random-walk of consumption expenditure.
Investment: determinants of business fixed investment; residential investment and inventory investment.
Active or passive; monetary policy objectives and targets; rules versus discretion: time consistency; the government budget constraint; government debt and Ricardian equivalence.
Classicals; Keynesians; New-Classicals and New-Keynesians.
1. Dornbusch, Fischer and Startz, Macroeconomics, McGraw Hill, 11th edition, 2010.
2. N. Gregory Mankiw. Macroeconomics, Worth Publishers, 7th edition, 2010.
3. Charles I. Jones, Introduction to Economic Growth, W.W. Norton & Company, 2nd edition, 2002.
Links:
[1] https://www.economics.iisuniv.ac.in/courses/subjects/intermediate-macroeconomics-ii
[2] https://www.economics.iisuniv.ac.in/academic-session/2018-19