This course deals with more recent advances in macroeconomic theory and the skills developed in this course will help students to apply the theoretical knowledge in research. Topics to be covered may include some or all of the following: National Income and macroeconomic theorizing. Different  approaches to macroeconomic modeling. Classical versus Keynesian economics, IS-LM model, Macroeconomic core theories and policy making, (consumption, investment, demand for and supply of money, public debt, inflation and unemployment, rational expectations), money and financial markets, macro economic models, rational expectation models,; imperfect information; real business cycle, sectoral shifts, fixed prices and general dis-equilibrium, labour contacts and sticky wages, Stability considerations and public policies, normal rigidities and economic fluctuations,. Business cycle theories. Growth models., economic growth monetary and fiscal issues.

Course pre requisites (if any):

Students must have knowledge about macroeconomics

Learning outcomes:

On successful completion of this course students will be able to:

  • Understand the latest developments in macroeconomic theory and apply them in research.
  • address the macroeconomic problems and their solutions. 


  1. Branson, W.H. 1988. Macroeconomic Theory and Policy,  Harper & Row. New York.
  2. Barro, R. J. 1996. Macroeconomics, John Willey& Sons, New York.
  3. Heijidra, B. J. and Fredrick. 2002. Foundations of Modern Macroeconomics,  Oxford University Press,


Description of system of Evaluation (Exam, assignments etc.):

Mid Term: 30 marks

Sessional: 20 marks

  • Project: 40%
  • Presentation: 30%
  • Participation: 30%

Final Exam: 50 marks

  • Viva                25
  • Project            15
  • Presentations 10

Class timing

Tuesday                     12:00 pm to 03:00 pm


Course Material