1 Introduction
- Why study economics
- Basic concepts of microeconomics c) Basic Framework of Macroeconomics
- Macroeconomic - issues, goals and policies e) Macroeconomic methods
- Controversies in modern macroeconomics
2 National Income and Demography
a) Economic Models
b) Measuring National Product c) Expenditures approach
d) Income approach
e) Problem in using GNP as a measure of welfare f) Poverty reduction strategy
g) Social safety nets
h) Lorentz curve and inequitable distribution of income
3 Inflation
a) Various types of inflation b) Causes of inflation
c) Negative and positive impacts of inflation d) Price Indexes
e) Measurement of inflation in Pakistan
4 Unemployment
a) Various types of unemployment b) Causes of unemployment
c) Okuns’ law
d) Short run Phillips curve
e) Macroeconomic policy and Phillips curve f) The long run Phillips curve
5 Exchange Rate and Trade Balance
a) Balance of payment and foreign trade
b) Current and capital accounts
c) Pakistan’s case: Balance of Payment
d) Exchange rate systems
e) Types of exchange rates
f) Monetary policy and exchange rate
g) Determination of exchange rate.
h) Crucial role of interest rate policy in the coordination of monetary and exchange rate policies.
i) Real exchange rate
j) Interest rate
k) Closed economy and open economy
l) Monetary and fiscal policy in fixed and flexible exchange rate regimes
m) Pakistan’s case: Exchange Rate Policies
6 Money
a) Definition and basic functions of money
b) Evolution of various forms of money in Pakistan
Monetary Theories
a) Quantity theory of money
b) The monetarist approach- liquidity preference theory and portfolio management theory
7 Demand and Supply of Money
a) Demand for money in an economy
b) Creation of money/credit expansion through banking system
c) Composition of M0, M1, M2 and M3
d) Components of Reserve Money (M0) and money multiplier
e) The behavior of money multiplier and its policy implications
8 Objectives of Monetary Policy
a) Price stability through prudent Monetary Policy
i) Inflation
ii) Various price indices
iii) Demand pull
iv) Cost push inflation
b) Economic growth and price stability
c) Soundness and stability of financial markets
9 Objectives of Fiscal Policy
a) Fiscal tools to stabilize the economy
b) Crowding out effect
c) Discretionary fiscal policy
d) Automatic stabilizers
e) Fiscal policy instruments that impact the economy
ISQ Syllabus Guide | Stage 2 | Economics 13
10 Transmission Mechanism of Monetary Policy and the impact on Banking Sector Credit Channels through which monetary policy affects the economy:
a) Credit channels
b) Money or interest rate channel
c) Exchange rate channel
d) Asset price channel
e) Experience of developed and developing countries
11 Central Banking and Monetary Policy Regimes
a) Monetary targeting
b) Inflation targeting
c) Choice of policy anchor
i) Volume of money
ii) Interest rate
iii) Exchange rate
d) A brief over view of monetary policy and central bank in Pakistan
12 Impact of Fiscal and Monetary Policy and Equilibrium
a) Fiscal and monetary policy mix
b) Impact of fiscal and monetary policy on AD-AS equilibrium
c) Short run vs. long run analysis
d) A brief on fiscal and monetary policy relationship in Pakistan Economy
13 The World Economy: International Monetary Institutions
a) A brief history of International Monetary Institutions
b) Objectives of IMF, World Bank, Asian Development Bank and Bank for International Settlement
c) The 2008 world debt crisis
d) The role of international lenders in debt management and poverty reduction of Pakistan
e) Performance criteria of the IMF program
