Programme B.A.
Economics with Foreign Trade
Course Title MONETARY TOOLS FOR POLICY FORMULATION
Type of Course Minor
Semester I
Academic Level 100 – 199
Course Details Credit Lecture Tutorial Practical Total
per week per week per week Hours
4 4 - - 60
Pre-requisites Basic Economics Course of 0 – 99 level
Course Summary This course explores the concept of monetary policy, the role of monetary
authorities, and to evaluate various tools of monetary policy and its
formulation.
COURSE OUTCOMES (CO):
Cognitive Knowledge Evaluation
CO CO Statement
Level* Category# Tools used
Instructor-
Understand the concept of monetary
CO1 U C created exams /
policy
Quiz
Practical
Analyse the role of monetary Assignment /
CO2 Ap P
authorities to stabilise the economy Observation of
Practical Skills
Seminar
Evaluate various tools of monetary Presentation /
CO3 U P
policy instruments Group
Discussion
Instructor-
Apply the formulation of monetary created exams /
CO4 Ap C
policy. Home
Assignments
Create complete understanding of the
CO5 current scenario within the framework U F Viva Voce
of Monetary policy formulation
* - Remember (R), Understand (U), Apply (Ap), Analyse (An), Evaluate (E), Create (C)
# - Factual Knowledge(F) Conceptual Knowledge (C) Procedural Knowledge (P)
Metacognitive Knowledge (M)
232
DETAILED SYLLABUS :
Module Unit Content Hrs Marks
Introduction 14
Introduction to Monetary Policy – Meaning and definition of
1 2
Monetary Policy
2 Objectives of Monetary Policy 2
The transmission Mechanism- How Monetary policy influences
I 3 3 20
Aggregate Demand
4 Theory of liquidity preference 2
5 The downward slope of the Aggregate Demand Curve – 2
6 Changes in the money supply 2
7 Changes in the interest rate 1
Economic Stabilisation – Monetary Policy 15
8 Tools of Monetary Policy 1
9 open market operation 1
10 changing the bank rate 1
11 changing the cash reserve ratio 1
II 22
12 selective credit controls 2
13 Expansionary monetary policy to cure recession or depression 2
14 How expansionary Monetary Policy works: Keynesian view 3
15 Tight monetary policy to control inflation 2
16 How the Tight Monetary Policy works: Keynesian view 2
Monetary Policy – Monetarist View 8
Sources of Monetary Mismanagement – variable time lags,
17 4
III interest rate as a wrong target variable 12
18 Monetary Rule: 2
19 Monetary Policy Prescription 2
Pre-requisites for Effective Monetary Transmission 11
Challenges of Effective Monetary Policy in Emerging
20 5
IV Economies 16
21 Monetary Transmission in Developing Countries: 4
22 Evidence from India 2
Open ended module 12
Discussion based on different economic stabilisation policies
V across countries
Seminar on presenting the comparative analysis of monetary
policy regimes of various countries
Note: The course is divided into five modules, with four modules together having total 22 fixed
units and one open-ended module with a variable number of units. There are total 48 instructional
hours for the fixed modules and 12 hours for the open-ended one. Internal assessments (30 marks)
are split between the open-ended module (10 marks) and the fixed modules (20 marks). The final
exam, however, covers only the 22 units from the fixed modules. The 70 marks shown in the last
column, distributed over the first four modules, are only for the external examination.
REFERENCE:
1. Mankiw, N. G. (2007). Principles of Macro Economics, 4TH EDITION, Cengage Learning.
(Module 1)
233
2. Ahuja, H. L. (2022). Principles of Macroeconomics. S. Chand Publishing.(Module 2 and Module
3)
3. Ghate, C., & Kletzer, K. M. (Eds.). (2016). Monetary policy in India: A modern macroeconomic
perspective. Springer. (Module 4)
MAPPING OF COS WITH PSOS:
PSO1 PSO2 PSO3 PSO4 PSO5 PSO6 PSO7
CO 1 3 - - - - - -
CO 2 - - - 1 - - 2
CO 3 - - - 3 - 3 2
CO 4 - - 2 3 - 2 3
CO 5 - - - - - - 2
CORRELATION LEVELS:
Level Correlation
- Nil
1 Slightly / Low
2 Moderate / Medium
3 Substantial / High
ASSESSMENT RUBRICS :
▪ Quiz / Assignment/ Viva Voce/ Discussion / Seminar
▪ Internal Exam
▪ Practical Assignments (20%)
▪ Final Exam (70%)
MAPPING OF COS TO ASSESSMENT RUBRICS :
Quiz / Assignment/ Viva Voce/ Practical End Semester
Internal Exam
Discussion / Seminar Assignment Examination
CO 1 ✓ ✓ ✓
CO 2 ✓ ✓
CO 3 ✓ ✓ ✓
CO 4 ✓ ✓ ✓
CO 5 ✓ ✓
234
Programme B.A. Economics with Foreign Trade
Course Title MONETARY POLICY AND STABILIZATION
Type of Course Minor
Semester II
Academic Level 100 - 199
Lecture Tutorial Practical Total
Credit
Course Details per week per week per week Hours
4 4 - - 60
Pre-requisites Macroeconomics course of 0 – 99 level
This course provides an in-depth analysis of monetary policy and its role
in stabilization within the framework of macroeconomic theory. It
examines the tools, objectives, and implementation of monetary policy,
Course Summary and its effectiveness in achieving macroeconomic stability. The course
also explores the relationship between monetary policy and other
macroeconomic variables such as inflation, output, employment, and
economic growth.
COURSE OUTCOMES (CO):
Cognitive Knowledge Evaluation Tools
CO CO Statement
Level* Category# used
Understand the concept and
Instructor-created
CO1 objectives of monetary U C
exams / Quiz
policy
Analyze the tools and
Practical
CO2 mechanisms of monetary An F
Assignment
policy implementation
Evaluate the effectiveness
Seminar
of monetary policy in
CO3 Ap F Presentation /
stabilizing the economy. Group Discussion
Apply theoretical concepts
Seminar
to real-world monetary
CO4 Ap P Presentation /
policy issues and
Group Discussion
challenges
Critically assess the role of
central banks in
CO5 formulating and An F Viva
implementing monetary
policy
Examine the relationship
between monetary policy Practical
CO6 An F
and macroeconomic Assignment
variables
* - Remember (R), Understand (U), Apply (Ap), Analyse (An), Evaluate (E), Create (C)
# - Factual Knowledge(F) Conceptual Knowledge (C) Procedural Knowledge (P)
Metacognitive Knowledge (M)
235
DETAILED SYLLABUS :
Module Unit Content Hrs Marks
Introduction to Monetary policy 10
1 Definition and objectives of monetary policy 2
I 2 Exchange stabilization Vs price stabilization 3 15
3 Historical Perspective 2
4 Role of Central Banks 3
Tools of Monetary policy 10
5 Open Market Operations 2
6 Variations in Reserve Requirements 2
II 15
7 Statutory liquidity ratio 2
8 Moral suasion 2
9 Selective credit controls 2
Fluctuations in price level 18
10 Inflation-types and causes 4
11 Demand pull inflation and test to indicate its presence 3
12 Cost push inflation and test to indicate its presence 3
III 13 Inflationary gap 1 25
14 Factors affecting increase and decrease in money income 2
15 Measures to control inflation and deflation 2
16 Stagflation 1
17 Phillips curve 2
Monetary Policy Implementation 10
18 Transmission Mechanisms 2
19 Role of Central Bank Independence 1
IV 20 Monetary process and stabilization policy 2 15
21 Lags in monetary policy 2
22 Measurement of monetary lags and comparison to fiscal
3
policy lags
Open Ended Module 12
Discussion on goals of economic stabilisation
Practical Assignments to study about the monetary policy and
V
macroeconomic stabilization
Seminar to present the student’s understanding of monetary
policy using a particular economy’s experience.
Note: The course is divided into five modules, with four modules together having total 22 fixed units
and one open-ended module with a variable number of units. There are total 48 instructional hours for
the fixed modules and 12 hours for the open-ended one. Internal assessments (30 marks) are split
between the open-ended module (10 marks) and the fixed modules (20 marks). The final exam,
however, covers only the 22 units from the fixed modules. The 70 marks shown in the last column,
distributed over the first four modules, are only for the external examination.
236
REFERENCE:
1. Gyanwaly, R.P. (2014), A Survey on Theories of Inflation: Classical to New Political
Macroeconomics. Kathmandu: Sunlight Publication.
ADDITIONAL READINGS
1. Gupta, G.S. (2008), Macroeconomics: Theory and Applications (3rd ed.). New Delhi:
McGraw Hill Publishing Company Ltd.
2. Froyen, R.T. (2003), Macroeconomics: Theories and Politics, (7th ed.). New Delhi: Pearson
Education.
3. Clower, R.W. (1973), Monetary Theory. England: Penguine.
MAPPING OF COS WITH PSOS:
PSO1 PSO2 PSO3 PSO4 PSO5 PSO6 PSO7
CO 1 3 - - - - - -
CO 2 - 3 - 1 - - -
CO 3 2 - 3 - - -
CO 4 - 3 1 3 - 2 2
CO 5 3 - - - 3 2 -
CORRELATION LEVELS:
Level Correlation
- Nil
1 Slightly / Low
2 Moderate / Medium
3 Substantial / High
ASSESSMENT RUBRICS :
▪ Quiz / Assignment/ Viva Voce/ Discussion / Seminar
▪ Internal Exam
▪ Practical Assignments (20%)
▪ Final Exam (70%)
MAPPING OF COS TO ASSESSMENT RUBRICS :
Quiz / Assignment/ Viva Voce/ Practical End Semester
Internal Exam
Discussion / Seminar Assignment Examination
CO 1 ✓ ✓ ✓
CO 2 ✓ ✓
CO 3 ✓ ✓ ✓
CO 4 ✓ ✓ ✓ ✓
CO 5 ✓ ✓ ✓ ✓
CO6 ✓ ✓ ✓
237
Programme B.A. Economics with Foreign Trade
Course Title MONETARY POLICY IN INDIA
Type of Course Minor
Semester III
Academic Level 200 – 299
Lecture Tutorial Practical Total
Credit
Course Details per week per week per week Hours
4 4 - - 60
Pre-requisites Economics Courser of level 100 – 199
This course explores the role of central bank in an economy and the
Course Summary effectiveness of monetary policy in achieving economic stability and
growth
COURSE OUTCOMES (CO):
Cognitive Knowledge Evaluation Tools
CO CO Statement
Level* Category# used
Understand the objectives,
tools, and framework of Instructor-created
CO1 U C
monetary policy in India. exams / Quiz
Analyse effectiveness of
Indian monetary policy in Practical
CO2 An F
achieving macroeconomic Assignment
stability and economic growth
Explain the role of the
Reserve Bank of India in
Seminar
regulating the financial
CO3 Ap F Presentation /
system and managing Group Discussion
currency circulation
Assess the impact of Indian
monetary policy on key
Seminar
macroeconomic variables
CO4 Ap P Presentation /
such as inflation, output,
Group Discussion
exchange rates, and interest
rates
Evaluate the current issues
faced by Indian monetary
CO5 authorities in formulating and An F Viva
implementing monetary
policy decisions.
* - Remember (R), Understand (U), Apply (Ap), Analyse (An), Evaluate (E), Create (C)
# - Factual Knowledge(F) Conceptual Knowledge (C) Procedural Knowledge (P)
Metacognitive Knowledge (M)
238
DETAILED SYLLABUS :
Module Unit Content Hrs Marks
I Central Banking and Monetary Policy 12
1 Money supply 1
2 Background and objectives of monetary policy 2
3 Types of monetary policy 2 17
4 Monetary management in an open economy 2
5 Impact of monetary policy on macroeconomic variables 3
6 Limitations of monetary policy 2
II Changing Role and Need of Central Banking 12
7 Origin and evolution of central banking 3
8 Role of the central bank in India 2
9 2 17
Need and rationale of a central bank
10 Autonomy of central banks 3
Changing contours of the autonomy of the central bank in
11 2
India
III Functions and Regulations of Reserve Bank of India 12
12 Functions of the RBI 3
13 Recent developments in currency management 2
14 Inflation targeting 2 18
15 Demonetization of currency in India 1
16 Crypto currencies and Central Bank Digital Currency 2
17 New Banking Licensing Policy 2
IV RBI’s Monetary Policy Committee (MPC) 12
Monetary policy in India during the Pre-MPC Period and
18 3
formation of the MPC
19 Purpose, Functions, and Constitution of the MPC 2 18
20 Taylor’s rule 2
The correlation between macroeconomic variables and
21 3
monetary policy in India
22 Major Acts related to the RBI 2
V Open ended module 12
Discussion on monetary policy of the Reserve Bank of India
in the last Five Years
Practical Assignments on recent policy changes announced
by the R.B.I
Seminar to present contemporary issues in monetary policy
management.
Note: The course is divided into five modules, with four modules together having total 22 fixed
units and one open-ended module with a variable number of units. There are total 48 instructional
hours for the fixed modules and 12 hours for the open-ended one. Internal assessments (30 marks)
are split between the open-ended module (10 marks) and the fixed modules (20 marks). The final
exam, however, covers only the 22 units from the fixed modules. The 70 marks shown in the last
column, distributed over the first four modules, are only for the external examination.
239
REFERENCE:
1. Mishkin, F., Eakins, S. (2017). Financial markets and institutions, 8th ed. Pearson.
ADDITIONAL READINGS
1. Hajela, T.N., (2009) Money and Banking, Ane Books Pvt Ltd., New Delhi.
2. Sundharam KPM, Banking: Theory, Law and Practice, Sultan Chand and Sons, New Delhi
(recent edition)
3. Khan, M. (2015). Indian financial system, 9th ed. Tata McGraw-Hill.
MAPPING OF CO S WITH PSOS:
PSO1 PSO2 PSO3 PSO4 PSO5 PSO6 PSO7
CO 1 3 - - - - - -
CO 2 - 3 - 1 - - -
CO 3 2 - 3 - - -
CO 4 - 3 1 3 - 2 2
CO 5 3 - - - 3 2 -
CORRELATION LEVELS:
Level Correlation
- Nil
1 Slightly / Low
2 Moderate / Medium
3 Substantial / High
ASSESSMENT RUBRICS :
▪ Quiz / Assignment/ Viva Voce/ Discussion / Seminar
▪ Internal Exam
▪ Practical Assignments (20%)
▪ Final Exam (70%)
MAPPING OF COS TO ASSESSMENT RUBRICS :
Quiz / Assignment/ Viva Voce/ Practical End Semester
Internal Exam
Discussion / Seminar Assignment Examination
CO 1 ✓ ✓ ✓
CO 2 ✓ ✓
CO 3 ✓ ✓ ✓
CO 4 ✓ ✓ ✓ ✓
CO 5 ✓ ✓ ✓ ✓
CO6 ✓ ✓ ✓
240
