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    3790 - Download - M.A. Economics Syllb Final

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    Ayushi Patel
    The document outlines the course structure and content for three papers in M.A. Part II (Semester IV). Paper I focuses on macroeconomic theory, covering the Keynesian, monetarist, and new Keynesian approaches to modeling output, inflation, and employment. Paper II covers international finance, including foreign exchange markets, balance of payments, international investment, financing, and institutions like the IMF. Paper III covers financial economics, including investment and portfolio analysis using models like CAPM, derivatives, and corporate finance topics like capital structure and dividend policy.

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    3790 - Download - M.A. Economics Syllb Final

    Uploaded by

    Ayushi Patel
    27 views5 pages
    The document outlines the course structure and content for three papers in M.A. Part II (Semester IV). Paper I focuses on macroeconomic theory, covering the Keynesian, monetarist, and new Keynesian approaches to modeling output, inflation, and employment. Paper II covers international finance, including foreign exchange markets, balance of payments, international investment, financing, and institutions like the IMF. Paper III covers financial economics, including investment and portfolio analysis using models like CAPM, derivatives, and corporate finance topics like capital structure and dividend policy.

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    3790_download_m.a. Economics Syllb Final

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    The document outlines the course structure and content for three papers in M.A. Part II (Semester IV). Paper I focuses on macroeconomic theory, covering the Keynesian, monetarist, and new Keynesian approaches to modeling output, inflation, and employment. Paper II covers international finance, including foreign exchange markets, balance of payments, international investment, financing, and institutions like the IMF. Paper III covers financial economics, including investment and portfolio analysis using models like CAPM, derivatives, and corporate finance topics like capital structure and dividend policy.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    27 views5 pages

    3790 - Download - M.A. Economics Syllb Final

    Uploaded by

    Ayushi Patel
    The document outlines the course structure and content for three papers in M.A. Part II (Semester IV). Paper I focuses on macroeconomic theory, covering the Keynesian, monetarist, and new Keynesian approaches to modeling output, inflation, and employment. Paper II covers international finance, including foreign exchange markets, balance of payments, international investment, financing, and institutions like the IMF. Paper III covers financial economics, including investment and portfolio analysis using models like CAPM, derivatives, and corporate finance topics like capital structure and dividend policy.

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    M.A.

    PART II (SEMESTER IV)

    Paper I MACROECONOMICS II 6 CREDITS

    Preamble
    This course takes the students from the Keynesian to monetarist approach of modelling
    macroeconomic theory. It discusses various perspectives on determination of output,
    inflation and employment and concludes with an insight into the New Keynesian
    economic view on business cycles.

    UNIT 1: THE KEYNESIAN SYSTEM III

    The Keynesian Aggregate Demand Curve


    The Keynesian Aggregate Demand Schedule Combined with the Classical Theory
    of Aggregate Supply
    The Keynesian Contractual View of the Labour Market
    Labour Supply and Variability in the Money Wage
    The Effects of Shifts in the Aggregate Supply Schedule
    Keynesian versus the Classics (Theories of Aggregate Demand and Supply)
    Perspectives: Severe Supply Disruption

    UNIT 2: THE MONETARIST COUNTERREVOLUTION

    Four Monetarist Propositions


    The Reformulation of the Quantity Theory of Money
    Monetarists versus Keynesians
    Unstable Velocity and the Declining Policy Influence of Monetarism
    Perspective: The Monetarist View of the Great Depression

    UNIT 3: OUTPUT, INFLATION AND UNEMPLOYMENT

    A Monetarist View
    A Keynesian View of the Output-Inflation Trade-Off
    Evolution of the Natural Rate Concept
    The New Classical Position
    Perspectives: The Great Depression-New Classical Views

    UNIT 4: REAL BUSINESS CYCLES AND NEW KEYNESIAN ECONOMICS

    Real Business Cycle Models


    Sticky Price (Menu Cost) Models
    Efficiency Wage Models
    Insider-Outsider Models and Hysteresis
    Perspective: Are Prices Sticky?
    M.A. PART II (SEMESTER IV)

    Paper II INTERNATIONAL FINANCE 6 CREDITS


    Preamble

    This course will enable students to understand the concepts and functioning of foreign
    exchange market. It will also cover various areas of international investment and forms of
    international financing. Finally it will highlight the role and capacity of the international
    financial institutions.

    UNIT 1: Foreign Exchange Rates and Markets

    Foreign Exchange Rates: Fixed, Flexible, Nominal, Real and Effective Exchange
    Rates, Purchasing Power Parity and Interest Parity
    Foreign Exchange Markets:Functions and Players
    Spot, Forwards, Futures and Options
    Currency Markets
    Foreign Exchange Risk and Exposure: Exposure, Risk and Parity Relationship
    Accounting Exposure versus Real Exposure
    Operating Exposure
    Hedging Risk and Exposure.

    UNIT 2: Balance of Payments

    Balance of Payments: Current Account Balance and Capital Account Balance,


    Official Reserve Transactions
    Relationship between Balance of Payments and National Income Accounts
    Approaches to Balance of Payments Adjustments: Elasticity, Absorption,
    Monetary and Portfolio-Balance Approaches

    UNIT 3: International Investment and Financing

    Cash Management: Investment and Borrowing Criterion with Transaction Costs


    International Dimensions of Cash Management
    Portfolio Investment: International Capital Asset Pricing
    Settlement of International Portfolio Investments
    Capital Budgeting for Foreign Investments: Project Selection, Cash Flows,
    Discount Rates, Growth and Concerns about Multinationals
    International Financing: Equity Financing, Bond Financing, Bank Financing
    UNIT 4: International Financial Institutions

    Gold Standard and Gold Exchange Standard


    International Monetary Fund
    International Reserves
    Special Drawing Rights
    Theory of Optimum Currency Areas: International Policy Co-ordination, Currency
    Board
    International Financial and Currency Crisis
    International Debt: Measures of Indebtedness, International Debt Crisis

    REFERENCES:

    Kenen Peter B, The International Economy, Cambridge University Press, New York,
    2000

    Krugman P. R. and Obstfeld M., International Economics-Theory and Policy, Addison-


    Wesley, Delhi

    Levi Maurice D., International Finance, Routledge, New York

    Pilbeam Keith, International Finance, Palgrave, New York

    Salvatore Dominick, International Economics, John Wiley and Sons, Singapore

    Sodersten Bo and Reed Geoffrey, International Economics, Macmillan, London


    M.A. PART II (SEMESTER IV)

    Paper III FINANCIAL ECONOMICS 6 CREDITS

    Preamble

    This course will enable students to understand the concepts investment and portfolio
    analysis and sources of corporate finance. It will bring out the functioning of financial
    markets, derivatives products with special emphasis on the capital asset pricing model.

    UNIT 1: INVESTMENT AND PORTFOLIO ANALYSIS

    Basic Theory of Interest


    Discounting and Present Value
    Internal Rate of Return Evaluation Criteria
    Fixed Income Securities
    Bonds Prices and Yields
    Structure of Interest Rate Yield Curves
    Spot and Forward Rates
    Portfolio of Assets
    Random Asset Returns
    Mean Variance Portfolio Analysis
    The Markowitz Model and Two Fund Theorem

    UNIT 2: CAPITAL ASSET PRICING MODEL

    The Capital Market Line


    The CAP Model
    The Beta of an Asset and of a Portfolio Security Market Line
    CAP Model in Investment and Pricing Formula

    UNIT 3: DERIVATIVES

    Meaning, Functions and Types of Derivatives -Forward Contracts, Futures


    Forward and Future Prices
    Stock Index Futures
    Interest Rate Futures
    Futures for Hedging.
    Options and Swaps and their Types
    Option Market-Call and Put Options
    Option Trading Strategies - Spreads, Straddles, Strips and Straps, Strangles
    The Principle of Arbitrage
    Participants of Derivatives Market- Hedgers, Speculators, Arbitrageurs
    UNIT 4: CORPORATE FINANCE

    Patterns of Corporate Financing


    Stocks
    Debt
    Preference Shares
    Convertible Bonds
    Capital Structure
    Cost of Capital
    Corporate Debt
    Dividend Policy
    The Modigliani Miller Theorem

    REFERENCES:

    David Luenberger, Investment Science, Oxford University Press

    Hull John C, Options, Futures and other Derivatives, Pearson Education

    Thomas Copeland, J. Fred Weston and Kuldeep Shastri, Financial Theory and Corporate
    Policy, Prentice Hall

    Richard Brealey and Stewart Myers, Principles of Corporate Finance, McGraw Hill

    Stephen Ross and Bradford Jordan, Fundamentals of Corporate Finance, McGraw Hill

    William Sharpe, Gordon Alexander and J. Bailey, Investment, Prentice Hall of India

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