Principles of Macroeconomics

PART I: MACROECONOMICS: THEORY OF INCOME AND EMPLOYMENT

1. Nature and Scope of Macroeconomics
2. Circular Flow of Income and Expenditure
3. National Income and its Measurement
4. The Classical Theory of Income and Employment Model
5.  Keynes's Theory of Employment: An Outline
6. Determination of National Income: Keynes's Simple Two-sector Model
7. Determination of National Income in a Three-sector Economy with Government  Appendix to Chapter 7: Concepts of Inflationary and Deflationary Gaps
8. Consumption Function, Appendix to Chapter 8: Post-Keynesian Theories of Consumption
9. Investment Demand
10. Theory of Investment Multiplier  Appendix to Chapter 10: Explanation of Depression or Recession and Global Financial Crisis, 2007-09
11. Aggregate Demand - Aggregate Supply (AD-AS) Model (With Flexible Price Level)
12. Unemployment, Full Employment and Wage-Price FlexibilityAppendix to Chapter 12: Unemployment in Developing Countries with Special Reference to India

PART II: IS-LM MODEL, INFLATION-UNEMPLOYMENT TRADE-OFF : PHILLIPS CURVE
13.  IS-LM Curves Model
14.  Inflation-Unemployment Trade-off: Phillips Curve and Rational Expectations Theory

PART III: MONETARY DEMAND AND SUPPLY
15.   Money: Nature and Functions
16.   Credit and Commercial Banking
17.   Central Banking
18.   Objectives and Instruments of Monetary Policy
Appendix to Chapter 18: Role of Monetary Policy in Economic Growth
19.   Supply of Money and its Determinants
20.   Demand for Money and Keynes's Liquidity Preference Theory of Interest
Appendix to Chapter 20: Post-Keynesian Theories of Demand for Money

PART IV: MONEY, PRICES AND INFLATION
21.   Money and Prices: Quantity Theory of Money
22.   Keynes's Theory of Money and Prices
23.   Friedman's Restatement of Quantity Theory of Money
24.   Inflation and Hyperinflation: Causes, Social Costs and Effects
Appendix to Chapter 24: Measurement of Inflation and Price Indices WPI and CPI

PART V: BUSINESS CYCLES AND MACROECONOMIC POLICY
25.   Analysis of Business Cycles
26.   Economic Stabilisation: Fiscal Policy
27.   Economic Stabilisation: Monetary Policy

PART VI: OPEN ECONOMY MACROECONOMICS
28.   National Income in an Open Economy and Foreign Trade Multiplier
29.   Balance of Payments
30.   Foreign Exchange Rate

PART VII: GOVERNMENT AND THE MACROECONOMY: PUBLIC FINANCE AND FISCAL POLICY
31.   Public Finance: Public Expenditure
32.   Public Revenue: Taxation and Budget
33.   Incidence of Taxation
34.   Fiscal Policy and Economic Growth in a Developing Country

PART VIII: ECONOMIC GROWTH
35.   Economic Growth and its Determinants
36.   Harrod-Domar Model of Growth
37.   Neoclassical Growth Model

Appendix to PART VIII: Sen vs. Bhagwati: Debate on Growth, Poverty and Distribution

1. Discusses Keynesian and monetarist explanations of causes of depression and the global financial crisis (2007-09)
2. Includes post-Keynesian explanations of business cycles such as Samuelson's interaction of multiplier and accelerator and Hick's trade cycle theory
3. Incorporates an exclusive module on economic growth discussing the Harrod-Domar and Neoclassical growth models
4. Briefly captures and critically examines the debate on economic growth, poverty and redistribution between two eminent Indian economists, Amartya Sen and Jagdish Bhagwat