MODULE 1: International Financial System International Monetary system-The gold standard- Bretton Woods System and afterwards- present international monetary system- Optimum currency Area theories-Currency boards and its advantages and disadvantages- Hybrid systems Foreign exchange market- structure and functions- spot and forward markets- hedging and speculation-demand and supply of foreign exchange – exchange rate determination-price quotation and volume quotation-nominal effective and real exchange rates- currency derivativesfutures, options and Swaps International financial markets- Financial globalization and international bank lendingInternational bond markets-international stock markets- International financial linkages- Euro Currency markets- Crypto currencies- LIBOR- Quantitative easing Theories of exchange rate determination- Mint parity theory-Purchasing power parity theoryMonetary approach- Portfolio balance approach-exchange rate overshooting. (30 Hours)
MODULE 2: Balance ofPayments Balance of payments –structure of BOPs- BOP adjustment mechanisms- elasticity approach elasticity estimates- currency pass-through- J curve effect – Monetary and asset market approach to BOP. (20 Hours)
MOULE 3: Macro- economic policy in open economy Income determination in an open economy and the trade multiplier process- foreign repercussion effect. Problem of internal balance and external balance- Swan –Salter Model- Assignment problem- Capital mobility and Mundell- Fleming Model - Effectiveness of monetary and fiscal policies under different degrees of capital mobility-combining monetary and fiscal policies (20 Hours)
MODULE 4. International factor movements, financial crises and monetary reform International labour movements- Portfolio investment and direct investments- Multi National Enterprises- causes for FDI- effect on host markets- transfer pricing- FDI in India Experience under current international monetary system- Financial crises in East Asia and Euro Zone-Subprime crisis- International debt problem- IBRD and IMF-Suggestions to reform international monetary and financial system. (20 Hours)
Development Economics has gained importance because of sustained interest of the developingcountries in uplifting their economic conditions by restructuring their economies to acquire greater diversity, efficiency and equity in consonance with their priorities. This paper is devoted to the policies and programmes required to empower the people to make development more sustainable and equitable.
The course enables the students to:
* Compare Classical and Keynesian Approaches to Inflation.
*Understand the Phillips Curve.
*Compare the concepts of Monetarism and Fiscalism.
*Develop an understanding about Rational Expectations Hypothesis.
*Develop an understanding about the concept Real Business Cycle Theory.
*Understand Neo Keynesian and Disequilibrium Models.
*Evaluate Post Keynesian Theories.
*Understand the concept and theories of New Keynesian Macro Economics.
*Analyze Insider Outsider Models.