Microfoundations of Macroeconomics

By Prof. Wasim Ahmad   |   IIT Kanpur
Learners enrolled: 1218
The course is designed to fulfill the need to understand the Microfoundations of macroeconomics. The course provides a detailed description of why microeconomic foundations are critical in understanding advanced macroeconomic theories. The course outline is highly relevant to the senior undergraduate, post-graduate students. The course is also beneficial to those aspirants who want to explore macroeconomics for high studies and plan to work with the central banks and organizations known for macroeconomic research. The course is also helpful for bank professionals and aspirants of Indian Economic Service who want to understand macroeconomics' deeper contexts from policy design and implementation perspectives. The course is also relevant for admission tests, GATE, and universities examinations.

INTENDED-AUDIENCE: Senior UG and PG Students.
INDUSTRY SUPPORT: Academia, Macroeconomic Research, Consultancy and Financial Services Industry.
Course Status : Completed
Course Type : Core
Duration : 8 weeks
Category :
  • Humanities and Social Sciences
Credit Points : 2
Level : Undergraduate/Postgraduate
Start Date : 24 Jan 2022
End Date : 18 Mar 2022
Enrollment Ends : 07 Feb 2022
Exam Date : 27 Mar 2022 IST

Note: This exam date is subjected to change based on seat availability. You can check final exam date on your hall ticket.

Page Visits

Course layout

Week 1: One-Period Model of the Macroeconomy: Representative Consumer and Firms, Government, Competitive Equilibrium, and Optimal Solutions.
Week 2: Search and Unemployment: Theory and Practical Implications
Week 3: Two-Period Model of Macroeconomy: The Dynamics of Consumption-Savings Decision and Credit Markets: Consumption  Smoothing; Euler’s Condition; Implications for consumption theory in macroeconomics.
Week 4: Intertemporal characteristics of taxation and role of government. Theoretical set-up of Ricardian equivalence. Credit Market  Equilibrium, Ricardian Equivalence, and Burden of the Government Debt.
Week 5: Credit market imperfections and role of asymmetry!
Week 6: Basics of monetary economics and monetary model in intertemporal set-up. Monetary
Neutrality, Surprise models and the cases of zero lower bound and quantitative easing.
Week 7: New Keynesian and New Monetarist Models; Flexible vs Sticky Prices
Week 8: Understanding Open economy using Intertemporal Framework; Exchange Rate Dynamics; Capital Controls

Books and references

  1. Williamson, D. Stephen. (2014). Macroeconomics (5th ed.). New York, USA: Pearson Education Inc.
  2. Mankiw, N. Gregory. (2016). Macroeconomics (9th ed.). New York, USA: Worth Publishers

Instructor bio

Prof. Wasim Ahmad

IIT Kanpur
Dr. Wasim Ahmad is Associate Professor in the Department of Economic Sciences, IIT Kanpur. He also holds the PK Kelkar Chair of the Institute. He is also the Subir Chaudhary Fellow at the London School of Economics and Political Science (LSE). His areas of teaching and research are Macroeconomics, Finance and Applied Econometrics.

Course certificate

The course is free to enroll and learn from. But if you want a certificate, you have to register and write the proctored exam conducted by us in person at any of the designated exam centers.
The exam is optional for a fee of Rs1000/- (Rupees one thousand only).
Date and Time of Exams: 27 March 2022  Morning session 9am to 12 noon; Afternoon Session 2pm to 5pm.
Registration url: Announcements will be made when the registration form is open for registrations.
The online registration form has to be filled and the certification exam fee needs to be paid. More details will be made available when the exam registration form is published. If there are any changes, it will be mentioned then.
Please check the form for more details on the cities where the exams will be held, the conditions you agree to when you fill the form etc.


Average assignment score = 25% of average of best 6 assignments out of the total 8 assignments given in the course.
Exam score = 75% of the proctored certification exam score out of 100

Final score = Average assignment score + Exam score

YOU WILL BE ELIGIBLE FOR A CERTIFICATE ONLY IF AVERAGE ASSIGNMENT SCORE >=10/25 AND EXAM SCORE >= 30/75. If one of the 2 criteria is not met, you will not get the certificate even if the Final score >= 40/100.

Certificate will have your name, photograph and the score in the final exam with the breakup. It will have the logos of NPTEL and IIT Kanpur. It will be e-verifiable at nptel.ac.in/noc

Only the e-certificate will be made available. Hard copies will not be dispatched.

Once again, thanks for your interest in our online courses and certification. Happy learning.

- NPTEL team

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