IX. Ricardian, Marshallian and Walrasain approaches to price determination. Types of Markets and price determination. Criteria or Welfare improvement. Alternate theories of distribution.
- Functions of money-Measurement of price level changes-Money and real balances-Monetary standards-High-powered money and the Quantity theory of money, its variants and critiques thereof-Demand for and supply of money-The money multiplier. Theories of determination of interest rate-Interest and prices-Theories of inflation and control of inflation.
- Full employment and Says’ Law-underemployment equilibrium-Keynes’ Theory of employment (and income) determination-Critiques of Keynesian Theory.
The modern monetary system-Banks, non-bank financial intermediaries, Discount House, and Central Bank. Structure of Money and financial markets and control. Money market instruments, bills and bonds. Real and nominal interest rates. Goals and instruments of monetary management in closed and open economies. Relation between the Central Bank and the Treasury. Proposal for ceiling on growth rate of money.
- Public finance and its role in market economy in iberalizatio, supply stability, allocative efficiency, distribution and development. Sources of revenue-Forms of Taxes and subsidies, their incidence and effects; Limits to taxation, loans, crowding-out effects, and limits to borrowing. Types of budget deficits-Public expenditure and its effects.
- International Economics
IX. Old and New theories of International Trade.
IX. Comparative advantage, Terms of trade and offer curve.
- Product cycle and Strategic trade theories.
- “Trade as an engine of growth” and theories of underdevelopment in an open economy.
- Forms of protection.
- Balance of Payments Adjustments Alternative Approaches.
IX. Price versus income, income adjustments under fixed exchange rates.
- Theories of policy mix.
- Exchange rate adjustments under capital mobility.
- Floating Rates and their implications for developing countries; Currency Boards.
- (a) IMF and the World Bank.
(b) W.T.O.
I Trade Blocks and monetary unions.
Growth and development.
IX. Theories of growth: Classical and neo-classical theories; The Harrod model; economic development under surplus Labour; wage-goods as a constraint on growth; relative importance of physical and human capitals in growth; innovations and development; Productivity, its growth and source of changes thereof. Factors determining savings to income ratio and the capital-out put ratio.
- Main features of growth: Changes in Sectoral compositions of income; Changes in occupational distribution; changes in income distribution; changes in consumption levels and patterns; changes in savings and investment and in pattern of investment. Case for and against industrialization. Significance of agriculture in developing countries.
- Relation between state, planning and growth, Changing roles of market and plans in growth economic policy and growth.
- Role of foreign capital and technology in growth. The significance of multi-nationals.
- Welfare indicators and measures of growth-Human development indices-The basic needs approach.
- Concept of sustainable development; convergence of levels of living of developed and developing countries; meaning of self-reliance in growth and development.
Indian Civil Service Exams (CSE) Syllabus - UPSC Exams
