St. Xavier’s College SYBMS Sem 3 Syllabus: Managerial Economics (Macro)

Managerial Economics (Macro) is a Semester 3 subject of SYBMS at St. Xavier’s College. Managerial Economics (Macro) helps BMS students to understand the aggregate behavior of the economy as a whole. The subject introduces BMS students to the major economic issues, problems and policies of the present times.

There are 4 main units in Managerial Economics (Macro) subject which are as follows:

Unit 1 – Introduction to Macro Economics – 15 lectures

Unit 2 – Policy Environment – 15 lectures

Unit 3 – International Trade – 15 lectures

Unit 4 – Globalization – 15 lectures.

The topics covered in Unit 1 – Introduction to Macro Economics are as follows:

1. Macroeconomic aggregates and concepts
2. Circular flow of income
3. National income and related concepts,
4. Calculation of National Income
5. National Income and Social Welfare
6. Concept of Human Development Index
7. Supply of money
8. Demand for money
9. Price Level
10. Inflation and Stagflation
11. Determination of income and employment
12. Overview of classical and Keynesian analysis
13. Business cycles – features, causes and remedial measures
14. Equilibrium in the goods and money markets (IS-LM)

The topics covered in Unit 2 – Policy Environment are as follows:

1. Role of State in different economic systems
2. Theory of economic policy
3. Monetary policy – objectives and instruments
4. Fiscal policy – objectives and instruments, impact on business, concept of inclusive growth
5. Economic stabilization – Fiscal vs Monetary policy and Structural policy
6. Trade policy – Protection vs Free trade

The topics covered in Unit 3 – International Trade are as follows:

1. Overview of international trade
2. Distinction between domestic and international trade
3. Basis of trade – comparative cost difference, factor endowment and factor intensity.
4. Balance of payments – accounting structure, disequilibrium (types, causes and remedial measures), and trends in India’s balance of payments
5. Mechanism for international payments
6. Flexible vs managed exchange rate systems.

The topics covered in Unit 4 – Globalization are as follows:

1. Globalization – meaning and effects  (gains and problems),
2. Role of IMF and World Bank,
3. Concept of global recession with contagion effects,
4. World Trade organization –agreements and implications for India,
5. Contentious issues,
6. Dispute settlement mechanism – 1,
7. Foreign capital – need for foreign capital,
8. Role of MNCs,
9. FDI vs portfolio investment,
10. Causes of rising FDI in India

Continuous Internal Assessment:

Mid semester test

Project work – presentation

The list of reference books for managerial Economics (Macro) is as follows:

1. Macroeconomics – Dorpbusch R, Fischer and Startz, Tata McGraw Hill
2. Macro economics – Richard T. Froyen, Pearson Education
3. Macro economics – Mankiw N.G. – Worth Publishers
4. Macro economics – Prabhat Patnaik, Oxford University Press
5. Macro economics – Andrew Abel and Ben Bernanke, Pearson Education
6. Macro economics for business management – H.L. Ahuja, S. Chand Publications
7. Macro economics for management students – 1 – A. Nag, McMillan Publications
8. Macro economics Environment-an analytical guide for managers – Shyamal Roy, Tata McGraw Hill
9. Monetary economics: Institutions, Theory and Policy – Suraj B. Gupta, S. Chand
10. International economics – Robert J. Carbaugh, Thomson Southestern