Economics Paper I: Micro, Macro, Money & Finance

• Economics Paper I topics cover advanced micro and macroeconomics, money, banking, finance, international economics, and growth & development

Advanced Micro Economics

• Focuses on Marshallian and Walrasian approaches to price determination
• Covers alternative distribution theories by Ricardo, Kaldor, and Kaleeki
• Studies market structures including monopolistic competition, duopoly, and oligopoly
• Examines modern welfare criteria such as Pareto Hicks & Scitovsky, Arrow's Impossibility Theorem along with A.K. Sen's Social Welfare Function

Advanced Macro Economics

• Explores approaches to employment income and interest rate determination
• Includes Classical, Keynes (IS-LM) curve, Neo-classical synthesis and New classical theories
• Theories of interest rate determination and interest rate structure are evaluated

Money, Banking, and Finance

• Involves demand for and supply of money
• Considers the money multiplier quantity theory (Fisher, Pique, and Friedman)
• Keyne's Theory on Demand for Money is important along with the goals and instruments of monetary management in closed and open economies
• Examines the relationship between the Central Bank and the Treasury
• Discusses proposals for ceilings on the growth rate of money
• Public finance's role in market economy is examined including stabilization, allocation of resources, distribution, and development
• Studies sources of government revenue, forms of taxes and subsidies along with their incidence and effects
• Limits to taxation, loans, crowding-out effects and limits to borrowings are considered in addition to public expenditure and its effects

International Economics

• Includes old and new theories of international trade, such as comparative advantage
• Considers terms of trade and offer curves
• Includes product cycle and strategic trade theories
• Examines trade as a catalyst for growth, including theories of underdevelopment in an open economy
• Examines forms of protection such as tariffs and quotas
• Explores balance of payments adjustments and alternative approaches
• Price versus income and income adjustments under fixed exchange rates are discussed
• Explores theories of policy mix, exchange rate adjustments under capital mobility, and floating rates and their implications for developing countries, including currency boards
• Includes trade policy and developing countries
• Covers BOP adjustments and policy coordination in open economy macro-models
• Recognizes speculative attacks
• Details trade blocks and monetary unions alongside WTO: TRIMS, TRIPS, domestic measures, and different rounds of WTO talks

Growth and Development

• Encompasses theories of growth, including Harrod's model and the Lewis model of development with surplus labor
• Includes balanced and unbalanced growth
• Explores human capital and economic growth, alongside research and development and economic growth
• Process of economic development of less developed countries: Myrdal and Kuznets on economic development and structural change
• Highlights the role of agriculture in the economic development of less developed countries
• Considers economic development and international trade and investment, including the role of multinationals
• Discusses planning and economic development
• Describes the changing roles of markets and planning, and private-public partnerships
• Includes welfare indicators and measures of growth like the Human Development Indices
• Recognizes the basic needs approach
• Studies the relationship between development and environmental sustainability
• Considers renewable and non-renewable resources, environmental degradation, and intergenerational equity development

Paper II

• Focuses on the Indian Economy in the Pre-Independence Era