Macroeconomics - III TYBA Semester VI

Macroeconomics - III TYBA Semester VI


Macroeconomics - III

TYBA Semester VI


Module - 1 : The Goods Market in the Open Economy

Trade Balance and its implications for GDP calculations – Export and Import Functions – The Real Exchange Rate and why it matters –Why equilibrium GDP is consistent with a trade imbalance ? – Fiscal and Exchange Rate Policy with a Fixed Exchange Rate

Module - 2 : Money/Financial Markets and Mundell-Fleming Model

The LM equation for the open economy – Uncovered Interest Parity and its implications for exchange rate determination – The combined IS/LM/UIP model.

Fiscal and Monetary Policy under Fixed and Flexible Exchange Rates – The Mundell-Fleming trilemma.

Module - 3 : Exchange Rate Regimes & Exchange Rate Crises

The choice of regime – Fixed or Flexible – The spectrum of arrangements from Hard Peg at one end to Fully Floating at the other; Why the Balance of Payments must always balance under Floating Exchange Rates but need not balance under a Fixed or Managed Exchange Rate regime.

Exchange Rate Crises – The relation between Exchange Rate crises and other kinds of crises (banking crises, financial crises, etc.)

Module - 4 : International Monetary History, 1900-present

The Gold Standard – The Inter-War Period and the Great Depression – 1944, Bretton Woods System and its collapse ; Fixing in Europe via ERM, and the Dollar Standard elsewhere.

The Maastricht Treaty and preparations for the Euro; The Global Financial Crisis and its consequences for the Euro; The Euro Crisis, Asia Infrastructure Investment Bank (AIIB), New Development Bank (NDB).

Additional Information

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ISBN-13 978-93-89293-66-1
AUTHOR Mascarenhas, Johnson, Mody
YEAR 2019
ED Second
SUBJECT Macroeconomics - III TYBA Semester VI