Monetary Theories

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

To acquaint students with the process of monetary system.

20.00
Unit I: 
Demand For and Supply of Money

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: 
Monetary Policy

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

15.00
Unit III: 
Monetary Policy in India

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: 
Velocity and Value of Money

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

20.00
Unit V: 
Inflation, Deflation, Stagflation and Devaluation

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

Academic Year: 
2014-2015
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