Macroeconomics Assignments

Narsee Monjee Institute of Management Studies

Macroeconomics Group Activity

Dipankar De Mumbai, October 2007

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.

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Every Group should be prepared with the assignment before the starting of the lecture (hard copy & soft copy)

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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 subphases in detail – Comment on the volatility of the growth rates

Assignment Details… 

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

Assignment Details… 

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

Assignment Details… 

Group 4:

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

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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

Assignment Details… 

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

Assignment Details… 

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

Assignment Details… 

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

Assignment Details… 

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

Assignment 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 197071 to 2006-07 – Plot India’s foreign exchange reserves since 1970-2007 – List your observations on the above two

Assignment Details… 

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

Assignment Details… 

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.