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Economics – Optional (Main Examination)
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Paper-I
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1.
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Ricardian,
Marshallian and Walrasain approaches to price determination. Types of
Markets and price determination. Criteria or Welfare improvement.
Alternate theories of distribution.
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2.
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Functions
of money-Measurement of price level changes-Money and real
balances-Monetary standards-High-powered money and the Quantity theory of
money, its variants and critiques thereof-Demand for and supply of
money-The money multiplier. Theories of determination of interest
rate-Interest and prices-Theories of inflation and control of inflation.
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3.
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Full
employment and Says' Law-underemployment equilibrium-Keynes' Theory of
employment (and income) determination-Critiques of Keynesian Theory.
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4.
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The
modern monetary system-Banks, non-bank financial intermediaries, Discount
House, and Central Bank. Structure of Money and financial markets and
control. Money market instruments, bills and bonds. Real and nominal
interest rates. Goals and instruments of monetary management in closed and
open economies. Relation between the Central Bank and the Treasury.
Proposal for ceiling on growth rate of money.
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5.
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Public
finance and its role in market economy in stabilisation, supply stability,
allocative efficiency, distribution and development. Sources of
revenue-Forms of Taxes and subsidies, their incidence and effects; Limits
to taxation, loans, crowding-out effects, and limits to borrowing. Types
of budget deficits-Public expenditure and its effects.
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International Economics
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(i)
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Old and New theories of
International Trade.
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a) Comparative advantage, Terms of trade
and offer curve.
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b) Product cycle and Strategic trade
theories.
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c) "Trade as an engine of
growth" and theories of underdevelopment in an open economy.
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(ii)
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Forms of protection.
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(iii)
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Balance of Payments Adjustments
Alternative Approaches.
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a) Price versus income, income
adjustments under fixed exchange rates.
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b) Theories of policy mix.
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c) Exchange rate adjustments under
capital mobility.
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d) Floating Rates and their implications
for developing countries; Currency Boards.
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(iv)
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(a) IMF and the World Bank.
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(b) W.T.O.
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(c) Trade Blocks and monetary unions.
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Growth and development.
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(i)
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Theories
of growth : Classical and neo-classical theories; The Harrod model;
economic development under surplus Labour; wage-goods as a constraint on
growth; relative importance of physical and human capitals in growth;
innovations and development; Productivity, its growth and source of
changes thereof. Factors determining savings to income ratio and the
capital-out put ratio.
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(ii)
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Main
features of growth : Changes in Sectoral compositions of income; Changes
in occupational distribution; changes in income distribution; changes in
consumption levels and patterns; changes in savings and investment and in
pattern of investment. Case for and against industralization. Significance
of agriculture in developing countries.
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(iii)
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Relation between state, planning and growth, Changing roles of market and
plans in growth economic policy and growth.
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(iv)
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Role of
foreign capital and technology in growth. The significance of
multi-nationals.
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(v)
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Welfare
indicators and measures of growth-Human development indices-The basic
needs approach.
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(vi)
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Concept
of sustainable development; convergence of levels of living of developed
and developing countries; meaning of self-reliance in growth and
development.
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Paper-II
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I.
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Evolution
of the Indian Economy till independence. The Colonial Heritage : Land
System & Agriculture, Taxes, Money and credit, Trade, Exchange Rate,
the "Drain of Wealth controversy" of late 19th Century.
Randade's critique of Laissez-Faire; Swadeshi movement; Gandhi and Hind
Swaraj.
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II.
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Indian
Economics in Post-Independent Era-Contributions of Vakil, Gadgil and Rao.
National and percapita Income; Patterns, Trends, Aggregate and sectoral-composition
and changes therein. Broad factors determining National Income and its
distribution; Measures of poverty. Trends in below poverty-line
proportion.
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III.
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Employment : Factors determining employment in short and long periods.
Role of capital, wage-goods, wage-rate and technology. Measures of
unemployment. Relation between income, poverty and employment, and issues
of distribution and social justice.
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Agriculture-Institutional
set-up of land system size of agricultre holdings and efficiency-Green
Revolution and technological changes-Agricultural prices and terms of
trade-Role of public distribution and farm-subsidies on agricultural
prices and production. Employment and poverty in agriculture-Rural
wages-employment schemes-growth experience-land reforms. Regional
disparities in agricultural growth. Role of Agriculture in export.
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IV.
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Industry
: Industrial system of
India
: Trends in Composition and growth. Role of public and private sectors,
Role of small and cottage industries. Indian industrial Strategy-Capital
versus consumer goods, wage-goods versus luxuries, capital-intensive
versus labour-intensive techniques, import-substituting versus export
promotion. Sickness and high-cost Industrial policies and their effects.
Recent moves for liberalisation and their effects on Indian industry.
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V.
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Money and
banking : The monetary institutions of
India
: Factors determining demand for and supply of money. Sources of Reserve
money-money multiplier-Techniques of money supply regulation under open
economy. Functioning of money market in
India
. Budget deficit and money supply. Issues in Reform of Monetary and
Banking Systems.
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VI.
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Index
numbers of price levels-Course of Price level in post-Independence
period-sources and causes of inflation-role of monetary and supply factors
in price level determination-policies towards control of inflation.
Effects of inflation under open economy.
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VII.
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Trade,
balance of payments and exchange : Foreign trade of
India
; composition and direction shifts in trade policy from import substituion
to export promotion. Impact of liberalisation on pattern of trade.
India
's external Borrowings-the Debt problem. Exchange rate of the rupee;
Devaluations, depreciations and their effects on balance of payments-Gold
imports and Gold policy-convertibility on current and capital
accounts-rupee in an open economy. Integration of Indian economy with
world economy-India and the WTO.
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VIII.
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Public
Finance and Fiscal Policy : Characteristics of and trends in India's
Public Finance-Role of Taxes, (direct and indirect) and subsidies-Fiscal
and monetary deficits-public expenditures and their significance-Public
Finance and Inflation-Limiting Government's debt-Recent fiscal policies
and their effects.
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Economic Planning in India-Trends in Savings and investment-Trends in
Savings to Income and capital-output ratios-Productivity, its sources,
growth and trends-growth versus distribution-Transition from Central
Planning to indicative planning-relation between Market and
Plan-strategies for Growth, social justice and Plans. Planning and
increasing the growth rate. |
