PAPER ‐ I

1. Advanced Micro Economics :

(a) Marshallian and Walrasian Approaches to Price determination.
(b) Alternative Distribution Theories : Ricardo, Kaldor, Kalecki.
(c) Markets Structure : Monopolistic Competition, Duopoly, Oligopoly.
(d) Modern Welfare Criteria : Pareto Hicks and Scitovsky, Arrow’s Impossibility Theorem, A. K. Sen’s
Social Welfare Function.

2. Advance Macro Economics :

Approaches to Employment Income and Interest Rate determination : Classical, Keynes (IS-LM)
curve, Neo-classical synthesis and New classical, Theories of Interest Rate determination and
Interest Rate Structure.

3. Money-Banking and Finance :

(a) Demand for and Supply of Money : Money Multiplier Quantity Theory of Money (Fisher, Pigou and
Friedman) and Keynes’ Theory on Demand for Money, 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.
(b) Public Finance and its Role in market economy : in stabilization of supply, allocation of resources
and in distribution and development. Sources of Government revenue, forms of Taxes and
Subsidies, their incidence and effects. Limits to taxation, loans, crowding-out effects and limits to
borrowings. Public expenditure and its effects.

4. International Economics :

(a) Old and New theories of International Trade.
(i) Comparative advantage,
(ii) Terms of Trade and offer curve.
(iii) Product cycle and Strategic trade theories.
(iv) Trade as an engine of growth and theories of underdevelopment in an open economy.
(b) Forms of protection : Tariff and quota.
(c) Balance of Payments Adjustments : Alternative Approaches.
(i) Price versus income, income adjustments under fixed exchange rates.

PAPER‐II

Indian Economy in Pre-Independence Era :

Land System and its changes, Commercialization of agriculture Drain theory, Laissez faire theory
and critique. Manufacture and Transport: Jute, Cotton, Railways, Money and Credit.
Indian Economy after Independence :

A. The Pre-Liberalization Era :

(i) Contribution of Vakil, Gadgil and V.K.R.V. Rao.
(ii) Agriculture: Land Reforms and land tenure system, Green Revolution and capital formation in
agriculture.
(iii) Industry Trends in composition and growth, Role of public and private sector, Small scale and
cottage industries.
(iv) National and Per capita income : patterns, trends, aggregate and Sectoral composition and
changes therein.
(v) Broad factors determining National Income and distribution, Measures of poverty, Trends in
poverty and inequality.

B. The Post Liberalization Era :

(i) New Economic Reform and Agriculture: Agriculture and WTO, Food processing, subsidies,
Agricultural prices and public distribution system, Impact of public expenditure on agricultural
growth.
(ii) New Economic Policy and Industry: Strategy of industrialization, Privatization, Disinvestments,
Role of foreign direct investment and multinationals.
(iii) New Economic Policy and Trade: Intellectual property rights : Implications of TRIPS, TRIMS,
GATS and new EXIM policy.
(iv) New Exchange Rate Regime: Partial and full convertibility, Capital account convertibility.
(v) New Economic Policy and Public Finance : Fiscal Responsibility Act, Twelfth Finance
Commission and Fiscal Federalism and Fiscal Consolidation.
(vi) New Economic Policy and Monetary system. Role of RBI under the new regime.
(vii) Planning: From central Planning to indicative planning, Relation between planning and
markets for growth and decentralized planning: 73rd and 74th Constitutional amendments.
(viii) New Economic Policy and Employment: Employment and poverty, Rural wages, Employment
Generation, Poverty alleviation schemes, New Rural, Employment Guarantee Scheme.