Advanced Monetary Economics

Paper Code: 
FSG 424
Credits: 
6
Contact Hours: 
90.00
Max. Marks: 
100.00
Objective: 

The course will enable students to –

  1. Understand the basic concept of money, its functions and monetary standards.
  2. Understand the demand and supply of money, theories of money 
  3. Understand the monetary policy and importance of credit control measures.

Course Outcomes (Cos):

 

Course

Learning outcome (at course level)

Learning and teaching strategies

Assessment Strategies

Paper Code

Paper Title

FSG 424

Advanced Monetary Economics

(Theory)

The students will be able to –

CO86.      Understand the concept of money and its circulation in the economy

CO87.      Comprehend and Analyze the concept of Demand and Supply of money.

CO88.      Understand the monetary transmission mechanism

CO89.      Compare and analysis the different theories of Monetary economics

CO90.      Integrate the monetary theories, critically examine and express their views by analysing the monetary policy strategies and relate it to the current changes in the economy

Approach in teaching:

Interactive Lectures, Discussion, Tutorials, Reading assignments, Team teaching

 

Learning activities for the students:

Field activities, Presentation, Giving tasks

Class test, Semester end examinations, Quiz, Solving Numerical problems in tutorials, Assignments, Class Presentation

 

18.00
Unit I: 
Money in Modern Economy:

Money in Modern Economy: Evolution of money, concept of near money, Barter system and its difficulties, Functions of money in modern economy.
The circular Flow of Money, Overview of Monetary Standard, principals and methods of Note issue.

18.00
Unit II: 
-

Demand For and Supply of Money: Demand for money and Liquidity Preference theory of interest, Concept of supply of money,
Monetary Aggregates-Measure of money supply, factors affecting money supply, Money Multiplier

18.00
Unit III: 
Monetary Policy:

Monetary Policy: objectives, parameters of monetary policy, Quantitative and qualitative credit control, Monetary policy and economic stabilization, Monetary policy and economic Development, Variation in the rate of interest and control of money supply, Working of Monetary Policy (Transmission Mechanism), Targets and Indicators.

18.00
Unit IV: 
Theories of Money

Velocity and Value of Money- Concept, factors
Theories of Money- Quantity Theory of money-Fisher’s, Cambridge Keynesian and Milton Friedman’s modern Theory.

18.00
Unit V: 
Inflation, Deflation, Stagflation and Devaluation

Inflation, Deflation, Stagflation and Devaluation – Meaning, Causes and effect. Role of monetary Policy in regulating inflation.

Essential Readings: 
  1. M.L.Seth, Monetary Economics- Educational Publishers, Agra
  2. T.N.Hajela, Monetary Economics.,Konark Publishers Pvt. Ltd, Delhi
References: 
  1. M.L.Jhingan, Money, Banking and International Trade,Vrinda Publication, Delhi
  2. S.B.Gupta, Monetary Economics.,S.Chand& Co, New Delhi MIthani
  3. .D.M, Money,Banking,International Trade and Public Finance., Himalayan Publication, New Delhi
Academic Year: 
2020-2021
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