Macroeconomic Management
Year / Semester: 
3rd Semester

The objective of this course is to provide the students the knowledge of macro environment and its influence in business.


Nature and scope of macroeconomics; functional areas of macroeconomic management; circular flow of income; national income accounting – alternative concepts and measures of national income and their interrelationship; stock and flow variables; aggregate demand; supply and macroeconomic equilibrium; nature of a trade cycle, causes of booms and recessions. Macro analysis of consumer behaviour; cyclical and secular consumption income relationship; absolute, relative and permanent income hypotheses; other factors affecting aggregate consumption; simple Keynesian model of income determination; multiplier analysis Functional areas of fiscal management; nature of fiscal policy fiscal deficits; fiscal policy in relation to growth and price stability; basic issues in fiscal deficit management; nature and management of public debt; business taxes – types, rationale and incidence.
Functional areas of monetary management; money supply measures; money creation process and money multiplier; instruments of monetary control; promotional and regulatory role of central banking and monetary policy; inflation management.

Suggested Readings: 
  1. Edward Shapiro, Macroeconomic Analysis, Galgotia, New Delhi
  2. S.B. Gupta, Monetary Economics: Theory, policy and Institution’s, S.Chand,
  3. M.C. Vaish, Macroeconomic Theory, Vikas, New Delhi
  4. H.L. Bhatia, Public Finance, Vikas, New Delhi