Thursday, 29 August 2013

an introduction to doon university economics and school of social sciences

Doon university was started by state government act of 2005 with an intention to bridge the gap which this state has in higher education and school education. It was always felt need to have a high quality university education. This city of dehradun ,the capital of Himalayan state of Uttarakhand homes schools which have reputation of providing education and values which are best of its times.
School of social sciences started in 2010 with economics as post graduate subject. By 2011 university also started offering 5 years Msc course in economics.
 Before   starting  anything in written means that how to start? Availability of modern technology enables one to write his or her views and also do share it with peoples around world.
Already being so much written in economics clearly leaves every possible chance of strong scrutiny.
When we started our first batch in 2011 we did come across with scenario when USA did receive a rate cut from Standard and poor’s. Gradually as we moved forward we found unstable situation in PIGS nation of euro zone, and how Germany played it’s role ,,being the strongest economy of the nation, There were times when Spain looked in troubles,, and then one of strong economies of Europe ,Italy also under pressure. There were gross uncertainties of future of euro currency and whether it would even survive or nations would start drifting away from namely, Greece being the most probable one.
Prominent role of troika of IMF ,  ECB and European commission in attempts to stabilise the euro zone. And revelations of global banking scandals, most notable being the LIBOR [London inter banking offered rate] ,HSBC affair of illegal laundering of money, and discussions about how the ethics have declined in field of banking.
We also came across statements ‘’ earlier we feared china, now we fear for them ’’.China which is very important in geo-economics spheres, how was it manipulating its currency.
About our India, we looked all controversy as of introduction of FDIs into retail sector, coal scam, rising budget deficit and even introduction of food  security  bill . We are watching rupee touching low mark as 68 against a dollar, and also appointment of new RBI governor.
Instabilities in middle east, Egypt, Syria,, conflicts of  USA and Iran over use of nuclear energy for power generation, diplomatic conflicts between Japan and China,
Incidences of Indian subcontinent ,,with timely conflicts along LOC between India –Pakistan, India –China, with whom we are intending to increase our bilateral trade bridging up our import-export gap, and we landing our super Hercules to ladakh,
With the arrival of 2014 US forces will leave Afghanistan, we fear probabilities of uncertainties in strategic and political situations in sub-continent.

Dehradun  has elaborated history and finds mention in historic and ancient  Hindu scriptures like Mahabharata where ‘’dronanagari’’ is described as a place where guru drona   ‘’guru’’ of pandavas resided .By 1800 it hardly had a population of 1000 peoples. During British period this city attained name of Doon valley and hill stations like mussorie attained prominence of being an intellectual city having retired persons from all walks of life living in peaceful Doon valley flooded with greenery and calm.    This city  gave shelter to refugees who migrated from west Punjab during unprecedented bloodshed of partition of India in 1947.

This year we witnessed natural calamity at one of holy shrines of Hindus Kedarnath, which resulted in loss of thousands of lives. Unexpected and heavy rainfall ,cloud bursting and then heavy amount of water accompanied with mud,,debris,,killed uncountable number of peoples,Significant role of Indian army and Air force   in mass scale rescue operation was widely acclaimed. This state is prone to sensitive seismic activities and being sitting on young Himalayan mountains makes it vulnerable to incidences of landslide, earthquake, In fact this ‘’chardhaam ‘’ yatra had a very important role in the state GDP and it is expected to take 3-4 years from losses that have generated out of decline in services sector as of calamity of this gravity.
Subjects like regional economics leave immense opportunities to explore the entire economy of uttarakhand as this is a newly born state in November,2000,& many relevant data can be collected for future planning formulation for the state.
 This state homes many Hindu shrines ,,gangotri ,,origin of river ganga & yamunotri,origin of river Yamuna ,, ,,also known as ‘’devbhoomi’’ land where gods reside.
Studying at this place and aiming to gradually be known in academic Diaspora is a tough task for us, we are starters, but we look forward to attain a reasonable maturity in sharing contents in few months from now.
At some stage we had to start with this sharing process, this is just an honest attempt in that direction.
As the time passes on we would also improve our quality of blog.


Thanks
harsh vardhan pathak 
batch 2011 msc integrated economics
doon university

course structure for eco of banking for 3rd year msc batch ,,batch 2011

Course outline for economic for banking

·         Economic analysis for banking
·         Money and the goal of monetary policies
·         The structure of central bank
·         The central bank and the supply of liquidity
·         Monetary policy and interest rate
·         Monetary policy and economic stability
·         Monetary policy and foreign exchange rate
·         Monetary policy and financial markets
·         Capital market
·         Economics of financial intermediaries
·         Business of banking and banking industries
·         Economic analysis for Banking regulation
·         derivatives


course structure of Msc economics at doon university

Course structure of msc eco,,3rd year,, [out of these any 4 optionals were to be studied,]
SSE 361 ISSUES IN ENVIRONMENTAL ECONOMICS
SSE 362 DEV. AND POL. ECONOMY
SSE 363 GENDER ECO.-WOMEN AND ECONOMY
SSE 364 REGIONAL DEVELOPMENT OR REGIONAL ECONOMICS-SPECIAL EMPHASIS ON UTTARAKHAND
SSE 365 ECO OF DISCRIMINATION
SSE 366 MONETARY ECONOMICS
SSE 367 ECO OF BANKING
SSE 368 MATHEMATICAL MODELLING
SSE 369 LABOUR ECO.
SSE 370 MOUNTAIN ECO
SSE 371 INTERNATIONAL FINANCE
SSE 372 ECO OF INDUSTRIAL ORGANISATION AND STRATEGY 
SSE 373 GOVERNANCE
SSE 374 AGRICULTURAL ECO
SSE 375 ECO OF ENERGY AND INFRASTRUCTURE
SSE 376 POVERTY AND INEQUALITY
SSE 377 DECENTRALISATION AND DEVELOPMENT
SSE 378 HEALTH ECONOMICS
SSE 379 FINANCIAL INSTITUTIONS AND MARKETS
SSE 380 SPECIAL TOPICS
,,
For 4th/5th year LIST OF PAPERS FOR SPECIALISATION[any 1 out of these 18]
• Environmental and Resource Economics:
1. Environmental Economics
2. Resource Economics
3. Energy Economics
4. Disaster Management
5. Environmental Modelling
6. Environment and Development
• Business Economics:
1. Financial Theory &Financial Markets 
2. Business Forecasting
3. Economics of Regulation
4. Law and Economics
5. Corporate Finance 
6. Economic Environment of Business
• Economics:
1. Economics of Risk & Uncertainty
2. International Trade & Finance
3. Development and Political Economy
4. Regional Economics-with special emphasis on Uttarakhand
5. Public Policy- Theory and Practices
6. Game Theory


COMMON COURSES

SEMESTER:1
Microeconomics-I
Macroeconomics: I
Mathematics-I

Statistics-I
Communicative English-I (QUALIFYING)

Basic Computer Application-I
SEMESTER:2
Microeconomics-II
Macroeconomics-II
Mathematics-II

Statistics-II
Communicative English-II
(QUALIFYING)
Basic Computer Application-II

SEMESTER:3
Public Economics-I
Econometrics-I
EVS
(QUALIFYING)
International Economics-I

SEMESTER:4
Public Economics-II
Econometrics-II
Environmental Economics
International Economics-II

SEMESTER:5
Economic Growth
Indian Economy-I
Optional-I

Optional-II

SEMESTER:6
Development Economics
Indian Economy-II
Optional-III
Optional-IV













Sunday, 11 August 2013

syllabus of international financial institutions and markets to be followed by jagganathan sir on e classes,,,

Financial Institutions and Markets

COURSE OBJECTIVE:

The objective of this course is to acquaint the students with the broad framework of how the various financial markets function in order to fulfill the role they are expected to perform and provide the many services to the participants. The students are also familiarized with different types of financial institutions as well as instruments used in today’s global markets. The focus in the course is to enable them grasp better the current and future trends that are reshaping the global financial system.

The course is structured for 30 lectures( 1 hour each) including Project presentations


I.                   Overview of the World’s Financial System: Importance of financial markets & institutions, functions of financial markets, structure of financial markets, internationalization of financial markets, function of financial intermediaries - problem of asymmetric information: adverse selection and moral hazard, financial intermediaries, financial assets, financial transactions, conflict of interest in financial industry; Brics and beyond; India – past, present and future
 Readings:
Ch 1, 2, 15, 16: Financial Markets & Institutions by Mishkin & Eakins, 2009
Goldman Sachs Research Paper No 66 (November 2001), No 99 (Oct 2003), No 192 (Dec 2009) and Progress report on the building of the BRICS (July 2011)
Goldman Sachs Research paper No 169 (June 2008)
II.                Fundamentals of Financial Marketsinterest rates, efficiency of financial markets

Readings:
I.                   Ch 3,4,5,6: Financial Markets & Institutions by Mishkin & Eakins


III      Major worldwide financial Crisis faced over the last century – the great depression     to the recent crisis

Reading:
-Ch 20: Financial Markets & Institutions by Mishkin & Eakins, 2009


IV    Management & Regulation of Banks/other Financial Institutions & markets - Efficiency, Stability and Government Intervention

Reading:
Ch 17, 20: Financial Markets & Institutions by Mishkin & Eakins, 2009

V       Central Banking and Monetary Policy - Structure of central banks: Federal Reserve system in US; European central bank; Tools, goals and targets of monetary policy.

Reading:
Ch 7, 8: Financial Markets & Institutions by Mishkin & Eakins, 2009

     VI          Money markets,      Bond Markets, Stock Markets, Mortgage Markets,
                        Foreign Exchange Markets & International Financial System,
                        Financial Derivatives Market,
                        Reading:
Ch 9-16: Financial Markets & Institutions by Mishkin & Eakins, 2009

VII         Mutual Fund IndustryGrowth of mutual funds, structure and types of mutual funds, fee structure, hedge funds, regulation of mutual funds


Reading:
Ch 21: Financial Markets & Institutions by Mishkin & Eakins, 2009    


     VII             Insurance Companies, Pension Funds
                         Readings:
                        Ch.22- Financial markets & Institutions by Mishkin & Fakins, 2009

IX              Investment banks, security brokers, security dealers, venture capital firms, finance companiesrole and functions, growth trends

Reading:
Ch 23: Financial Markets & Institutions by Mishkin & Eakins, 2009

            X          Indian Financial Institutions and Markets – An Overview

                        Readings:
                        Contemporary Literature on the subject.


TEXT & READINGS:

  • Sharma, Ruchir, “Breakout Nations: In pursuit of the next economic miracle”, Allen Lane, 1st Edition 2012
  • McKinsey Global Institute, “Debt and deleveraging: The Global credit Bubble and its Economic Consequences” Report Jan 2010 - Updated report dated January 2012
  • Mishkin, Frederic S and Eakins, Stanley G, “Financial Markets & Institutions”; Pearson Education 6th edition 2011
  • Stiglitz, Joseph, “Free Fall – Free markets and the sinking of the global economy”, W. W. Norton and company First Edition 2010
  • Swan, Arthur, “How unregulated capital caused the crash of 2008”, Shree Book Centre First Edition 2009
  • Krugman,Paul,” The return of depression economics and the crisis of 2008”, W.W. Norton 1st Edition 2008
  • Madura, Jeff, “Financial Markets and Institutions”, Cengage Learning 2008
  • Kohn, Meir, “Financial Institutions & Markets”, Oxford University Press, Second edition 2007
  • Saunders, Anthony and Cornett, Marcia M, "Financial Markets & Institutions – An Introduction to the Risk Management Approach”, Tata-McGraw-Hall, 3rd Edition, 2007

Goldman Sachs Research
·         Global Economics Paper No  66: Building better global economics Brics (November 2001)
·         Global Economics Paper No  99: Dreaming with Brics (October 2001)
·         Global Economics Paper No 169: Ten things for India to achieve its 2050 potential(June 2008)
·         Global Economics Paper No 192: Long term outlook for Brics and N-11 post crisis(December 2009)
·         Brics monthly issue No 11/7: A progress report on the building of the Brics (July 2011)
·         Goldman Sachs’s Global Markets Institute, “Markets take their toll on pension funded status”, Report dated 15th August 2011





EVALUATE ROLE OF GLOBALISATION WITH SPECIAL REFERENCE TO INTERNATIONAL TRADE

Globalisation would refer to more & more interaction of different cultures, races ,creeds, religion in a quest to know more about different peoples, their manner of living ,& then gradually co-operating with each other in fields of sciences, sports, economics, cultural legacy and heritage, in a way  which is mutually beneficial to all.
Even in historic times man had a quest to explore new things,new places for settlement ,new technology for easing of life,& that sole query motivated him to create wonders.These tendencies have been witnessed & will always remain.
Great explorers in history searched new lands & sea routes & paved path for trade to follow through sea route.
Those land discoveries made it easy to settle colonies & then exploit all possible transport of raw materials.
Today around 90% of world trade is carried by international shipping industry. Without shipping the import & export of goods on the scale necessary for the modern world would not be possible. Sea borne trade continues to expand ,bringing benefits for consumers across the world through competitive freights costs. As of now there are over 50,000 merchant ships trading internationally ,transporting every kind of cargo. World fleet is registered in over 150 nations,& manned by over a million sea farers of virtually every nationality. Even in terms of our own Indus valley civilization, trade[international]via ancient Indus delta port Barbarican & river Indus with Middle East & other parts of world has existed for over five thousand years.
Today world’s nation are highly interlinked as of bilateral or multilateral trade ties. Globalisation ensures that more & more such activities take place & even at diplomatic levels settle tensed issues. This can be written giving special reference of nation like Iran.
Iran has been blamed by U.S for carrying nuclear enrichment programme not for mere civilian purpose. Iran has been irresponsible at diplomatic levels & which gets reflected in its language of Iranian leadership. Rarely one would see a leader of a nation going to an extent & releasing statement as such’’ to wipe out a Jewish state’’.
More and more of international trade comes with few external compulsions & boundation within which a nation has to function. It is generally believed that if a nation of a section in more and more globalised world, is disruptive, problematic or unsatisfied ,first of all initiations are done to settle matters with dialogues at leadership levels. Economic sanctions are the next steps in direction of restoring normalcy by pressurizing leadership as it becomes difficult for nations to isolate themselves completely from the rest of world. Military strike or strategic warfare is the last considered option.
As OF NOW IN 2012,usa FROZE ALL THE PROPERTY OF Iran’s central bank and other financial institutions in the US, and European Union’s oil embargo on Iran came into effect.USA has exempted 7 states from sanctions against over Iran oil. These specific waivers were granted to India, SOUTH korea, Malaysia, ,South Africa, Sri Lanka, Taiwan and TURKEY. This specific law was signed in USA in December 2011,which directed that countries have until 28 June to greatly reduce oil imports from Iran or be cut off from USA financial system.
It is as of globalization and international trade that it is still believed that this issue of Uranium enrichment program can be resolved. However Iran does not  seem interested and comes up with intentions to disrupt or exercise  control over Gulf of Hormuz, which if happens will result in unprecedented disruption of global oil Supply and contribute to higher global oil prices.
OPEC ,which is organization of Petroleum economies has said that crude oil production for its member ,not including Iraq, stood at 28.1 million barrels per day in July ,a decline of 270,000 bpd[barrels per day]compared with the previous months.
This is one of examples of role that globalization and more and more of international trade compulsions are playing. As of latest developments UK based giant bank Standard Chartered ,has been accused by New York regulator [OFAC].US Treasury Department’s office of Foreign Assets Control, of illegally hiding transactions with Iran .Bank has laundered as much as $ 250 bn [161 euro bn ] for nearly a decade.
Another incidence which has happened within past one month & has clearly shocked the economic world is of LIBOR t[London inter-banking lending rate].This incidence has once again unearthed the manner in which  financial services are carried world wide and how regulatory bodies many a times do not function properly and that negligence leads towards collapse of market and deterioration in investor’s faith.
LIBOR [LONDON INTER BANK OFFERED RATE].This is the rate at which banks in London  lend money to each other for short-term in a particular currency. A new LIBOR rate is calculated every morning by financial data firm Thomson Reuters based on interest rates provided by members of British Banker ’s  Association [BBA].
This rate officially came into existence in 1984. LIBOR  rates are calculated  and published daily at 11;30 a;m [GMT] by Thomson Reuters.
Every day a group of  leading banks submit rates for 10 currencies  and 15 lengths of loan[borrowing periods] ranging from overnight to one year .It is a global bench mark interest rate used to set a range of financial deals. It is also a measure of trust in financial  system   and faith banks have in each other’s financial health. LIBOR is used to set arrange of financial transactions  worth an estimated $ 800 trillion which is equal to 12 times of global GDP. Many financial institutions , mortgage  lenders  and credit –card agencies set their own rates relative to it. As early as 2005 there was evidence that Barclay’s had tried to manipulate dollar LIBOR at request of it’s derivative traders and other banks. It was clearly in 2008,Wall Street Journal published a report that questioned integrity of LIBOR.
It was in 20009 BBA had circulated guidelines for all contributor banks on setting   LIBOR rates in same manner. Barclay’s made no change to it’ s system to take account of BBA guidelines .Important rules as such of having distinction between derivatives team and submitters were violated.
It was finally i9n JUNE 2012, Barclay’s admitted to misconduct. The UK’S FSA imposed a euro 59.5 mn penalty.FSA[Financial service authority],US Department of Justice of Commodity futures trading Commission [CFTC]imposed fines worth euro 102 mn and euro 128 mn respectively ,thus way forcing Barclay’s to pay a total of around  euro 290 mn.
When financial crisis peaked in late 2007,many banks stopped  lending to each other over concerns about their financial health with some banks submitting much higher  rates than others.  Barclay ’ s  was the bank which was submitting higher rates. This prompted rumours that Barclay’s was in trouble. This followed a series of internal debate and controversial conversation with bank of England official, Barclay’s began to submit much lower rates. A bank has to pay a higher interest rate to borrow funds if other lending banks have less confidence in it.
Mechanism  with which LIBOR was fixed.
                                                                         A                                 B                                     C                                  D
Bank submit rates-                                    1%                               2%                                    3%                            4%
Lower bottom is discarded-                    1%                                 2%                                   3%                            4%
Avg. is calculated of remainder-                                       2.5 % This is LIBOR.
In same way rates if submitted by 16 banks were considered ,lower and upper 4 rates ,means overall 8 rates were discarded and average of rest 8 were calculated on which transactions took place.
As a consequence  of  it, those paying interest on loans would have benefitted from lower LIBOR rates, savers and investors would have lost out.
Barclay’s had to pay $ 453 million to settle U.S and British authorities’ allegations that British bank had tried to manipulate London interbank offered rate.
Barclay’s will not be the only bank put through wringer over question of rate manipulation .Barclay’s is also likely to face civil cases, as customers on wrong side of LI BOR  movements bring claims.AS of now  at least   12 banks are involved in LIBOR investigations  around the world. Fines on Barclay’s may herald similar penalties on others.
Investigations of more than a dozen bank by authorities on 3 continents are starting   to   unearth evidence  that some banks improperly  sought to alter LIBOR.
Now it is a another case of globally working trade .Analysts say industry  may have to shell out billions of dollars to settle the cases and other  bank chiefs could find themselves in troubles.
Barclay’s in only bank so far to resolve LIBOR-fixing allegation, but roughly a  dozen  banks acknowledged being under criminal or civil investigation in various countries in the matter.
MORE THAN $  800tn in securities are linked to the Libor ,including $ 350 tn in swaps & 10 tn $ in loans ,including home and auto loans. These transactions take place globally.
Britain’s financial services industry is a national asset. It has thrived for many reasons that include London’s   favourable  time –zone, that allows it to trade with Asia and  America .It was a fact of great prestige that Britain did effectively set interest rates for rest of world .As of now Britain’s ability to play by and police the rules is under scrutiny.BBA[British Banker’s Association] is considering a LIBOR revamp. Instead of  estimated  rates actual rates are considered to be used.