SVKM’s Narsee Monjee Institute of Management Studies

Name of School – Kirit P. Mehta School of Law

Program: B.A., LL.B. (Hons.) 8101 & B.B.A., LL.B. (Hons.) 8102 Semester: II

Module: Economics II Module Code:

Teaching Scheme Evaluation Scheme
Tutorial Term End
Lecture Practical Internal Continuous
(Hrs per Examinations (TEE)
(Hrs per (Hrs per Credit Assessment (ICA)
week) (Marks- 50 in
week) week) (Marks - 50)
Question Paper)
4 0 0 4 Marks Scaled to 50 Marks Scaled to 50
Pre-requisite:
The student should have elementary knowledge of microeconomics

Course Objectives
1. To develop fundamentals of macroeconomics and its application in empirical world.
2. To enhance the capability of students to understand the prevailing macroeconomic
policies.
3. To understand policy mix and its impact on the legal research.

Course Learning Outcomes:

 Demonstrate ability to interpret provisions of legal rules and its effectiveness on
macroeconomic development. (PLO1a).
 Undertake research and study case laws using various economic tools and techniques for
finding solutions and communicate the research in a lucid manner. (PLO2b)
 Develop strategies, interconnect issues, and provide suggestions for effective framing of
economic policy and institutions. (PLO3b)
Detailed Syllabus: (per session plan)
Unit Description: Duration
1. Introduction to Macroeconomics 3 Hrs
Topic Details: What is macroeconomics and four major concerns of an
economy- GDP, Inflation, Unemployment and Business cycle.
Reading Material (Basic): Chapter 3: Macroeconomics By N. Gregory
Mankiw, 10th edition · 2018
Reading Material (Advance): Chapter 2: Macroeconomics by Rudiger
Dornbusch, Stanley Fischer, Richard Startz , 13th edition, 2018
Pedagogy: Discussion Method with Visual Stimulation Aids
2. Macroeconomic Flow Models 3 Hrs
Topic Details: Circular Flow in a Two Sector Model - Household and
Business Firms, Circular Flow in a Three Sector Model - A Model with
Government
Income and Expenditure, Circular Flow in a Four Sector Model - Model with
Foreign Sector.
Reading Material (Basic): Chapter 3: Macroeconomics By N. Gregory Mankiw,
10th edition · 2018
 SVKM’s Narsee Monjee Institute of Management Studies
Name of School – Kirit P. Mehta School of Law

Reading Material (Advance): Chapter 2: Macroeconomics by Rudiger Dornbusch,

Stanley Fischer, Richard Startz , 13th edition, 2018.
Pedagogy: Discussion Method with Visual Stimulation Aids
3. National Income and It’s Components 3 Hrs
Topic: Output Method, Income Method and Expenditure Method, GDP, GNP,
CPI, WPI, IIP, Nominal GDP (current prices), Real GDP (constant prices).
Reading Material (Basic): Chapter 3: Macroeconomics By N. Gregory Mankiw,
10th edition · 2018
Reading Material (Advance): Chapter 2: Macroeconomics by Rudiger
Dornbusch, Stanley Fischer, Richard Startz ,13th edition, 2018.
Pedagogy: Discussion Method with Excel
4. Aggregate Demand and Aggregate Supply 3 Hrs
Topic: Components of Aggregate Demand- Consumption, Investment,
Government expenditure and Net exports,
Components of Aggregate Supply- Land, Labour, Capital and technology
Shifts in Aggregate demand and Aggregate Supply
Long Run Aggregate Supply Curve.
Reading Material (Basic): Chapter 5: Macroeconomics by Rudiger Dornbusch,
Stanley Fischer, Richard Startz ,13th edition, 2018.
Pedagogy: Discussion Method
5. Short Run and Long Run Fluctuation in Aggregate Demand and Aggregate 3 Hrs
Supply
Topic: Interaction of Inflation, Unemployment and economic growth:
Negative and Positive shocks to Aggregate Demand and Aggregate Supply.
Reading Material (Basic): Chapter 5: Macroeconomics by Rudiger Dornbusch,
Stanley Fischer, Richard Startz ,13th edition, 2018.
Pedagogy: Discussion Method
6. Money and Banking System I 3 Hrs
Topic: Evolution of Money, Functions of Money, Nominal Interest Rates and
real interest rates.
Reading Material (Basic): Chapter 4: Macroeconomics By N. Gregory Mankiw,
10th edition · 2018
Reading Material (Advance): Chapter 16-17: Macroeconomics by Rudiger
Dornbusch, Stanley Fischer, Richard Startz ,13th edition, 2018.
Pedagogy: Discussion Method
7. Money and Banking System II 3 Hrs
Topic: Demand for money and supply for money interaction, Liquidity Trap,
factors influencing money supply.
Reading Material (Basic) : Chapter 4: Macroeconomics By N. Gregory Mankiw,
10th edition · 2018
Reading Material (Advance): Chapter 16-17: Macroeconomics by Rudiger
Dornbusch, Stanley Fischer, Richard Startz ,13th edition, 2018.
Pedagogy: Discussion Method
8. Money and Banking System III 3 Hrs
Topic: Derivation of cash deposit, required reserve ratio, excess reserve ratio,
 SVKM’s Narsee Monjee Institute of Management Studies
Name of School – Kirit P. Mehta School of Law

How do banks create money, High powered money, central bank and
commercial bank functions, Money Multiplier and Credit Creation
Reading Material (Basic) : Chapter 4: Macroeconomics By N. Gregory Mankiw,
10th edition · 2018.
Reading Material (Advance): Chapter 16-17: Macroeconomics by Rudiger
Dornbusch, Stanley Fischer, Richard Startz ,13th edition, 2018.
Pedagogy: Discussion Method and excel for calculating ratios
9. Inflation 3 Hrs
Topic: Anatomy of Inflation, why does inflation occur, cost- push inflation,
Demand pull inflation, stagflation, hyperinflation, headline inflation and core
inflation,
Reading Material (Basic): Chapter 5: Macroeconomics By N. Gregory Mankiw,
10th edition · 2018.
Reading Material (Advance): Chapter 6/7/8 Macroeconomics by Rudiger
Dornbusch, Stanley Fischer, Richard Startz ,13th edition, 2018.
Pedagogy: Discussion Method
10. Policies to Control Inflation 3 Hrs
Topic Details: Easing Supply Constraints, Restricting the Demand–Pull.
Reading Material (Basic): Chapter 5: Macroeconomics By N. Gregory Mankiw,
10th edition · 2018.
Reading Material (Advance): Chapter 6/7/8/22 Macroeconomics by Rudiger
Dornbusch, Stanley Fischer, Richard Startz ,13th edition, 2018
Pedagogy: Discussion Method with Visual Stimulation Aids
11. Unemployment 3 Hrs
Topic Details: Unemployment Rate, Labour force, Types of Unemployment:
Frictional, Seasonal, Structural and Cyclical, Policies to control
Unemployment.
Reading Material (Basic): Chapter 7: Macroeconomics By N. Gregory Mankiw,
10th edition · 2018.
Reading Material (Advance): Chapter 6/7/8 Macroeconomics by Rudiger
Dornbusch, Stanley Fischer, Richard Startz ,13th edition, 2018
Pedagogy: Discussion Method with Visual Stimulation Aids
12. Philips Curve 3 Hrs
Topic Details: Trade-off between inflation and unemployment-Short Run and
Long Run Analysis, Natural Rate of Unemployment and Business cycles.
Reading Material (Basic): Chapter 6/7/8 Macroeconomics by Rudiger
Dornbusch, Stanley Fischer, Richard Startz ,13th edition, 2018
Pedagogy: Discussion Method with Visual Stimulation Aids
13. External Sector I 3 Hrs
Topic Details: Trade and degree of openness, Balance of payments, Current
Account, Capital Accounts, Balance of Trade
Reading Material (Basic): Chapter 6: Macroeconomics By N. Gregory Mankiw,
10th edition · 2018
Pedagogy: Discussion Method with Excel
 SVKM’s Narsee Monjee Institute of Management Studies
Name of School – Kirit P. Mehta School of Law

14. External Sector II 3 Hrs

Topic Details: Types of Exchange rate-flexible, fixed and pegged, Exchange
rate determination, Nominal exchange rate, real exchange rates.
Reading Material (Basic): Chapter 6: Macroeconomics By N. Gregory Mankiw,
10th edition · 2018
Pedagogy: Discussion Method with Excel
15. External Sector III 3 Hrs
Topic Details: Theory of Purchasing Power parity.
Reading Material (Basic): Chapter 6: Macroeconomics By N. Gregory Mankiw,
10th edition · 2018.
Pedagogy: Discussion Method with Excel
16. Monetary Policy – Introduction to LM Curve 3 Hrs
Topic Details: Money Supply and tools (qualitative and quantitative) of
monetary policy, Aims and Objectives of the monetary policy.
Reading Material (Basic): Chapter 11-12: Macroeconomics By N. Gregory
Mankiw, 10th edition · 2018
Reading Material (Advance): Chapter 11-12 Macroeconomics by Rudiger
Dornbusch, Stanley Fischer, Richard Startz ,13th edition, 2018.
Pedagogy: Discussion Method with Excel
17 Fiscal Policy – Introduction to IS Curve 3 Hrs
Topic Details: Aggregate Expenditure model and tools of fiscal policy.
Reading Material (Basic): Chapter 11-12: Macroeconomics By N. Gregory
Mankiw, 10th edition · 2018
Reading Material (Advance): Chapter 11-12 Macroeconomics by Rudiger
Dornbusch, Stanley Fischer, Richard Startz ,13th edition, 2018.
Pedagogy: Discussion Method with Excel
18 Interaction of Monetary and Fiscal Policy 3 Hrs
Topic Details: IS/LM interaction, Crowding out effect and policy mix
Reading Material (Advance): Chapter 11-12 Macroeconomics by Rudiger
Dornbusch, Stanley Fischer, Richard Startz ,13th edition, 2018.
Pedagogy: Discussion Method with Excel
19 Global Macroeconomic Events 3 Hrs
Topic Details:
Global Financial Crises 2008-2009
Reading Material: https://hbsp.harvard.edu/product/910M08-PDF-ENG
Topic Details: Brazilian Stagflation
Reading Material: https://hbsp.harvard.edu/product/UV7604-PDF-ENG
Pedagogy: CASE STUDY
20 Global Macroeconomic Events 3 Hrs
Topic Details:
DEMONITISATION:
Reading Material: https://hbsp.harvard.edu/product/W17732-PDF-ENG
Topic Details:
Bretton Woods Collapse
Reading Material: : https://hbsp.harvard.edu/product/UV7512-PDF-ENG
 SVKM’s Narsee Monjee Institute of Management Studies
Name of School – Kirit P. Mehta School of Law

Pedagogy: CASE STUDY

Total 60 Hrs

Text Books:
1. Macroeconomics By N. Gregory Mankiw, 10th edition · 2018.
https://www.google.co.in/books/edition/_/pyuKtwEACAAJ?
hl=en&sa=X&ved=2ahUKEwj8sq2Ds6PyAhVAILcAHfilCw8Q7_IDMBF6BAgHEAI
2. Macroeconomics by Rudiger Dornbusch, Stanley Fischer, Richard Startz , 13th edition,
2018.
https://g.co/kgs/BsLV3L

Reference Books:
1. Olivier Blanchard, Macroeconomics, Pearson Education Inc., 8th edition, 2021.

Any other information:

Total Marks of Internal Continuous Assessment (ICA) : 50 Marks
Distribution of ICA Marks:
Description of ICA Marks
Research Paper 20 Marks
Seminar 10 Marks
Viva 10 Marks
Class Participation 10 Marks
Total Marks: 50 Marks

____________ _____________
Signature Signature
(Prepared by Dr. Parinaaz Mehta) (Approved by Dean)