Monetary Economics

Paper Code: 
24DFSG801
Credits: 
04
Contact Hours: 
60.00
Max. Marks: 
100.00
Objective: 

This course will enable students to understand the evolution and functions of money, analyze the demand for and supply of money, evaluate monetary policy tools and their effects on economic stabilization, and comprehend theories of money and their impact on inflation and deflation.

 

Course Outcomes: 

                                           

 

Course

Learning outcome

(at course level)

Learning and teaching strategies

Assessment Strategies

Course Code

Course

Title

 

24DFSG 801

Monetary Economics

(Theory)

CO223: Analyze and interpret the concept of money, examining its circulation in the economy.

CO224: Evaluate and analyze the dynamics of Demand and Supply of money to understand their interplay.

CO225: Explain the monetary transmission mechanism, understand its implications.

CO226: Compare, contrast, and analyze different theories of Monetary economics for comprehensive insights.

CO227: Synthesize various monetary theories, critically examining them, and articulate views by analyzing monetary policy strategies in relation to current economic changes.

CO228: Contribute effectively in course-specific interaction

 

Approach in teaching: Interactive Lectures, Discussion, Tutorials, Power point presentation.    

 Learning activities for the students: Self-learning assignments, Seminar presentations.

CA test, Semester end examinations, Quiz, Solving problems in tutorials, Assignments, Presentation

 

 

 

 

 

 

12.00
Unit I: 
Money in Modern Economy
  • Money in Modern Economy: Evolution of money, concept of near money, Barter system and its difficulties, Functions of money in modern economy.
  • The circular Flow of Money, Overview of Monetary Standard, principals and methods of Note issue.
12.00
Unit II: 
Demand For and Supply of Money
  • Demand For and Supply of Money: Demand for money and Liquidity Preference theory of interest, Concept of supply of money,
  • Monetary Aggregates-Measure of money supply, factors affecting money supply, Money Multiplier
12.00
Unit III: 
Monetary Policy
  • Monetary Policy: objectives, parameters of monetary policy, Quantitative and qualitative credit control, Monetary policy and economic stabilization, Monetary policy and economic Development, Variation in the rate of interest and control of money supply, Working of Monetary Policy (Transmission Mechanism), Targets and Indicators.
12.00
Unit IV: 
Velocity and Value of Money
  • Velocity and Value of Money- Concept, factors
  • Theories of Money- Quantity Theory of Money-Fisher’s, Cambridge Keynesian and Milton Friedman’s modern Theory
12.00
Unit V: 
Inflation, Deflation, Stagflation and Devaluation
  • Inflation, Deflation, Stagflation and Devaluation – Meaning, Causes and effect. Role of monetary Policy in regulating inflation.

 

Essential Readings: 
  • M.L.Seth, Monetary Economics- Educational Publishers, Agra
  • T.N.Hajela, Monetary Economics.,Konark Publishers Pvt. Ltd, Delhi
  • M.L.Jhingan, Money, Banking and International Trade,Vrinda Publication, Delhi
  • S.B.Gupta, Monetary Economics.,S.Chand& Co, New Delhi
  • MIthani.D.M, Money,Banking,International Trade and Public Finance., Himalayan Publication, New Delhi
  • T R Jain Money and Banking, V K Global Publication Pvt Ltd
  • Tandon and MathurMoney and BankingShivam Publication, Jaipur
References: 

Suggested Readings

  • T.N.Hajela, Monetary Economics ,Konark Publishers Pvt. Ltd, Delhi
  • M.L.Jhingan, Money, Banking and International Trade,Vrinda Publication, Delhi
  • S.B.Gupta, Monetary Economics.,S.Chand& Co, New Delhi
  • Mithani.D.M, Money,Banking,International Trade and Public Finance., Himalayan Publication, New Delhi

E-contents

Reference Journals

  • Journal of Money, Credit and Banking
  • The Review of Economic Studies
  • Journal of Monetary Economics
  • International Journal of Monetary Economics and Finance
Academic Year: 
2024-2025
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