Monetary Theories

Paper Code: 
FSG 424
Credits: 
06
Contact Hours: 
90.00
Max. Marks: 
100.00
Objective: 

To acquaint students with the process of monetary system.

20.00
Unit I: 
UNIT I

Demand For and Supply of Money:
Concept and Components of money, Functions of money ,
Demand for money and its different approaches, Supply of money and its determinants, Monetary V/s Real liquidity

20.00
Unit II: 
UNIT II

Monetary Policy: Objects of monetary policy under static, cyclical a
nd growth settings. Monetary equilibrium criteria - Rising prices, Stable prices and neutral money. Relationship between Monetary
policy and Fiscal policy. Instruments and technique s of monetary control. Limitations of monetary policy.

15.00
Unit III: 
UNIT IIII

Monetary Policy in India : Its institutional limitations in promoting Economic development. The concept of Controlled Expansion. Dichotomy in the Indian money market -links between organised and
unorganised sectors, Relationship between money and Capital market in India.

15.00
Unit IV: 
UNIT IV

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

20.00
Unit V: 
UNIT V

Inflation, Deflation, Stagflation and Devaluation – Meaning , Causes and effect.

Essential Readings: 

• M.L.Seth, Monetary Economics- Educational Publishers, Agra
• T.N.Hajela, Monetary Economics.,Konark Publishers Pvt. Ltd, Delhi

References: 

• M.L.Jhingan, Money, Banking and International Trade,Vrinda Publication, Delhi
• S.B.Gupta, Monetary Economics.,S.Chand & Co, New Delhi
• MIthani.D.M, Money,Banking,International Trade and Public Finance., Himalayan Publication, New Delhi

  • Printer-friendly version
  • PDF version