Monetary Theories

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

To acquaint students with the process of managing the Financial Services

18.00
Unit I: 

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, Concept and Components of money, Functions of money, components of money supply, Monetary Aggregates-Measure of money supply, factors affecting money supply, Money Multiplier

18.00
Unit III: 
Monetary Policy of India

 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.

Unit IV: 

Velocity and Value of Money- Concept, factors

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

Unit V: 

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

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: 
2018-2019
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