Course Code: MEC-(O) 1832 Course Name: Money, Banking and Public finance Unit I: Concept and Role of Money
Money— Meaning and functions; Role of money, Characteristics of good money, Gresham law, Monetary standards- Gold and paper, System of note issue; Value of money- concept and measurement.
Unit II Demand and Supply of Money
Theory of demand for money- Classical and Keynes; Money supply concept, components and approaches; Money multiplier-concepts and determinants, Control of money supply.
Unit III Financial Institutions
Meaning and functions of commercial banks; credit creation–purpose and limitations; liability and assets of banks; Central bank—Functions; Quantitative and qualitative methods of credit control. Indian money market- Structure and features; Financial sector reform in India-1991.
Unit- IV Inflation
Meaning, types, causes and effects of inflation, Classical theory of inflation, Demand pull and cost push inflation, Measures to control inflation; Monetary policy- objectives, targets and indicator.
Unit V Public Finance.
Meaning and scope of public finance; taxation-type, cannon and concept of equity in taxation; Impact and incidence of taxation, Budget- functional and economic classification of budgets, revenue and capital budget, Measures of budget deficit- fiscal deficit, revenue deficit, and primary deficit.
Basic Reading List:
1. Frederic S. Miskin (1997), Financial Institutions and Markets, Addison Wesley, USA.
2. S.B. Gupta (2001), Monetary Economics, S. Chand & Company, New Delhi.
3. Robert J. Carbaugh (2004), International Economics, Thompson Publishing Company, New York.
4. Dominick Salvatore (2003), International Economics, John Wiley & Sons, Singapore 5. Luckett, D.G, Money and Banking, McGraw-Hill Kogakusha.
6. Sethi, T.T, Monetary Economics, S Chand and Co. New Delhi
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