Macroeconomics Assignments

Macroeconomics

Group Activity

Dipankar DeMumbai, October 2007

Narsee Monjee Institute of Management Studies

Macroeconomics: Project

A Group project on a given macro economic topic

– Project topic for each of 5-member Group (including names of Group

members) to be conveyed before the 2nd Session through email by the

Class Representative

– Project outline to be submitted by the end of 4th Session. Students to

discuss about the coverage in the project with the faculty

– Word limit: not exceeding 3,000 (font 11, 1.5 line spacing)

– Final Report submission at the end of Second Last Session (9th session)

– Each Group would have to make a PowerPoint Presentation on the Topic

based on the Project Report submitted

Project Topics

1. Japanese Economy: A Macroeconomic Study

2. Strength of India’s Macroeconomic Fundamentals for Economic

Superpower

3. Fiscal Deficit & Fiscal Management in India

4. Inflation targeting in India

5. Liquidity management in the Indian Financial System

6. Foreign Exchange Management Policy in India

Macroeconomics: Assignments

A Group will make a PowerPoint presentation on one particular

assignment at the beginning of each lecture for 15 minutes only.

Every Group should be prepared with the assignment before the

starting of the lecture (hard copy & soft copy)

The presentations would start from the 2nd Session onwards.

Assignment Details…

Group 1:

– Plot India’s GDP at market prices, GDP at factor cost at current prices, GDP at

factor cost at constant prices for the period 1970-71 to 2005-06

– Plot the GDP growth rates for the same period

– Calculate Compound Annual Rate of Growth % (CARG)

– Plot India’s GNP at factor cost at current & constant prices for the period 1970-

71 to 2005-06

– Sub-divide the period into 3 periods & carry out the same exercise as above

• 1970-71 to 1984-85; 1985-86 to 1994-95; 1995-96 to 2006-07

– Comment on the overall growth story of India during each of the sub-

phases in detail

– Comment on the volatility of the growth rates


Group 2:

– Plot India’s overall GDP, GDP agriculture, GDP industry, & GDP services at

factor cost at current & constant prices for the period 1996-97 to 2006-07 on

a quarterly basis

– Plot the all relevant growth rates of the data series for the same period

– Calculate Compound Annual Rate of Growth % (CARG)

– Sub-divide the period into 2 periods & carry out the same exercise as above

• 1996-97 to 2000-01 & 2001-02 to 2006-07

– Comment on the share of GDP components over the period

– Comment on the average growth rate & the volatility of the growth rates

– Comment on the sectoral contribution in the overall GDP growth, and

the rationale behind such observance


Group 3:

– Plot India’s domestic savings for the period 1980-81 to 2005-06

– Plot various components of domestic saving

– Plot savings to GDP ratio for the same period

– Plot GDCF for the period 1980-81 to 2005-06

– Plot GDCF to GDP ratio for the above period

– Comment on the savings & investment ratio in India

– See the trend in Private Final Consumption Expenditure (PFCE)

– Also see the trend in its various components

– Comment on its growth during 1991-92 to 2005-06


Group 4:

Show the weighting diagram of major components of IIP in the overall

IIP Index

Also show the major classification process under IIP series

Annual

– Plot IIP General, IIP manufacturing since 1985-86

– Plot IIP capital goods, IIP consumer goods (durables + non-durables)

– Plot IIP infrastructure, IIP electricity, IIP cement, steel

Quarterly since 2001-02

– Plot all the above,

– Comment on the movement; emphasize on the last 3 years


Group 5:

– Calculate Inflation based on WPI for the period 1970-71 to 2006-07.

– Also calculate the same for the fuel group in the overall WPI

– Calculate Inflation based on CPI(IW) for the period 1970-71 to 2006-07

– Calculate quarterly inflation based on WPI for the period 2000-01 to

2007-08

– Plot CPI & WPI on the same graph to comment on their movement during

1991-92 to 2007-08

– See whether there is any relation between inflation rate (WPI) & money

supply, interest rate & GDP growth rate


Group 6:

– Plot Bank rate(%) & SBI Advance Rate(%) for 1980-81 to 2006-07

– Comment on the movement of the same during the period

– Plot India’s prime lending rate (PLR) since inception

– Plot the growth in money supply (M3), during the same period

– Plot Bank’s credit to the commercial sector during the same period

– Plot 365 days & 91 days -Treasury Bill rates for the period 1980-81 to

2006-07

– Plot 5-yr yield since 2002-03 (quarterly) & comment


Group 1:

– Plot Fiscal deficit in India as a % of GDP since 1980-81 (centre only)

– Plot Fiscal deficit in India as a % of GDP since 1980-81 (centre + states)

– Plot Fiscal deficit in India as a % of GDP & inflation rate during the same

period

– Plot Fiscal deficit in India as a % of GDP & GDP growth rate during the

same period

– Comment on Foreign Direct Investment (FDI) & its components in India

since 1991

– Comment on Foreign Portfolio Investment (FPI) & its components in India

since 1991


Group 2:

– Comment on Foreign Direct Investment (FDI) & its components in India

since 1991

– Comment on Foreign Portfolio Investment (FPI) & its components in India

since 1991

– Other investment details


Group 3:

– Plot India’s Exports & Imports ($ billion) for the period 1980-81 to 2006-07

– Comment on the growth rate of the same in a graph during the period

– Calculate Trade Balance (X-M)

– Do you see any great difference during the post reforms period (1991-2007)

– Plot India’s current account balance as a % of GDP during the period 1970-

71 to 2006-07

– Plot India’s foreign exchange reserves since 1970-2007

– List your observations on the above two


Group 4:

– Plot average Rs/ Us $ exchange rate during the period 1970-71 to 2006-07

– Calculate appreciation / depreciation during the same

– Divide the entire period taking 5-yr for each & calculate the average

appreciation / depreciation & comment on the same

– Calculate the volatility during the entire period & the sub-periods

– Plot current account as % of GDP & Rs/ $ exchange rate for the entire

period

– Do you find any kind of relationship


Group 5:

– Plot average Us $/ Euro exchange rate during the period 1999 to 2007

– Calculate appreciation / depreciation during the same & comment on the

same

– Take quarterly average rate & calculate the volatility during 2002-2007

– Plot average US Fed rates (quarterly) since 1991 & the US CPI inflation (%)

– Plot current account deficit as % of GDP of US & US $ / Euro exchange rate

for the entire period

– Do you find any kind of relationship.

Documents

Macroeconomics Assignments