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Mains Optional Economics and related queries

Hopefully, people with interest in economics optional or interested to have economics as optional will find this thread useful.
I am committing myself to the thread, to address your queries and doubts to my best of knowledge. (Moderators kindly bear with this thread for few days)
In the next few post, I will post my experience of economics as an optional for CSE.
RBI Grade B Manager


  • Part 1 (Why I have chosen economics)
    I chose economics because of my interest in following macro economy since my engineering days, also have learnt basic micro and macro economics during my management. And beyond that, with economics as an optional, I can appear for RBI Grade B with much confidence and later on too can move to job without much difficulty. (Just my thought)

    And I have taken the decision without going into the details of syllabus for economics. Later on, I found that my knowledge was limited to Paper II that too up to limited extent. As I didn't know about government programmes and other aspects related to public finance.

    Regarding Paper I, my previous knowledge was limited to basics of micro and macro. I didn't have any idea of public finance theories, international economics (other than that currency and WTO), welfare economics. But thanks to my basic knowledge of micro and macro economics; I covered the syllabus with in time.
    RBI Grade B Manager
  • Part II (How I prepare for that)

    There are lot of guidance material available for economics in blogs. For example, few of them are by Gaurav Agrawal sir, harshika ma'm and Divya Mittal ma'm. In the beginning, I started with my pre read set of books for micro and macro. At the same time, I followed EPW, Yojana, Kurukshetra and government sites (ebiz, mea etc) to cover paper II. Also, I read Uma Kapila (Dutt and Sundaram has lot of data), Economic Survey, synopsis of 12th FYP. (Regular googling of new topics is included into it and sites like Arthpedia, social issues blogs and think tank reports)

    But after going through GA economic notes and past year question papers; I realized the importance of standard books for paper I. I bought Salvatore for International Economics (recommended by many and I have found this book interesting) Musgrave and Musgrave for public finance. Regarding Welfare economics and money banking, I followed notes of GA as I found them quite good.

    Definitely, my preparation is not full proof and it do require lot of brushing. I haven't touched A P Thirwall for welfare economics and Ahuja (considered main book for mains prep) for paper I. And regarding paper II, I still don't write like an economist; that too need lot of research papers to be read.
    RBI Grade B Manager
  • @madinlove Great initiative! I have the economics optional as well. I'll be happy to help too.
  • @c_alam_ity Thanks friend, I don't look this thread as prerogative of mine or anyone; rather to all those like you (willing to contribute) as well as to those (seeking info about economics and having doubts in optional). So, again you are cordially invited to share and contribute. (Oops, Jyada formal ho gaya kya)
    RBI Grade B Manager
  • Great i have also economics optional and currently digging Pindyck ..
  • @btcallahabad How's your experience with the book till now? It is for microeconomics naa? Do you have the soft copy or it's hard copy?
    RBI Grade B Manager
  • Hi..I too have economics as my optional...
    Interested persons ping me their number on whatsapp so we discuss further
    Ghandi Nehru ,etc have just selfless service in common.
    Be selfless if u can afford loosing it!!
  • @madinlove yes i have soft copy and chapter 12 is important only
  • @btcallahabad Kindly check your Indox
    RBI Grade B Manager
  • Can anyone explain me the H theory of money supply (also there in Paper I of Mains 2014)? Or the source where it is explained in an understandable way.
    RBI Grade B Manager
  • Madinlove its well explained in ahujas macroeconomics in money and banking portion.the high powered theory of moneysupply.u can refer to the same
    Cogito ergo sum
  • @vivanna But the problem is that, I don't have Ahuja (neither referred it to previously). Also, in a remote location right now. So, Can you take trouble of posting the concerned page of Ahuja regarding high powered theory of money supply.
    RBI Grade B Manager
  • @c_alam_ity @btcallahabad @vivanna How did you find this year economics paper? I found paper I bit different than last year papers (to be frank bit tough) while paper II lengthy (but manageable with numbers).
    RBI Grade B Manager
  • The theory explains how the high powered money(H) is related to total money supply(M) in the country.High powered money consists of currency held by public(Cp) and cash reserves(R) and money supply in the country includes Cp+demand deposits(DD).Its evident that theres a one-to one relationship between Cp in both case whereas demand deposits are a multiple of R.
    Money Multiplier(m)=M/H.Hence money supply in the country depends upon size of money multiplier and that of H.
    m=1+k/r+k where k is currency depost ratio (Cp/D)and
    r is cash-reserve ratio(R/D)

    In the final analysis,M=H(1+k/r+k)
    this is in crux

    Cogito ergo sum
  • @madinlove...paper I was easy in comparison to last year while paper 2 was on similar lines of last year.Its undisputable that econ paper of last 2 years esp paper 1 has turned to a tough mode in comparison to previous years.paper 2 was too general so that even without preparation you can achieve decent numbers if not very good.But yes to achieve extremely good marks as scored by the toppers who had econ as optional it requires serious preparation.Paper 2 was a bit lengthy also as i struggled to complete the same :)
    Cogito ergo sum
  • @vivanna Well, with comparison to last year paper I is definitely on easy side. The usual public finance and monopoly/Oligopoly questions were missing this time.
    RBI Grade B Manager
  • @madinlove I thought Paper 1 this year was tougher than expected mainly because I hadn't anticipated the Microeconomics portion to be this tough. I thought Paper 2 was definitely much easier and very general as has been said earlier. Oddly, for me Paper 2 wasn't that lengthy because that was the only Paper that I was able to attempt in its entirety.
  • @c_alam_ity Exactly, I too didn't anticipate that money multiplier and money supply would be that much important. Although, managed to complete the paper II but had to race through the entire three hours. My bet was on international economics and welfare economics for paper I.
    RBI Grade B Manager
  • edited February 2015
    @madinlove.are you a member of any google group for ias?i requested membership of econprepforias group two times,sadly i was denied the same in the first instance n did not get any reply for the sec one.believe,they havent found me authentic enough
    Cogito ergo sum
  • @vivanna I am a member of that group. But that group is not very active. Only exchange of ebooks used to happen. Let me check, if I can add you a member there.
    RBI Grade B Manager
  • @madinlove @vivanna If you guys are interested, we could start an online study group. Given that there is a lot of time till the next exams, we could go through the syllabus, topic by topic and exchange notes and readings.
  • @c_alam_ity Definitely, that would be a very good idea. I am in for any such group.
    RBI Grade B Manager
  • edited February 2015
    Count me in guys.. I am up for any google group/online study group. Since I am a newbie, I am up for the extra effort, but plz let me in. :)
    जहाँ जन्नत की उम्मीद ही नहीं वहाँ गुनाहो से क्या डरना..
  • @MarvHartigan All the interested members will be welcomed once the group takes shape.
    RBI Grade B Manager
  • I would be happy to join.On the lighter side,i prefer to believe that I am in the list this time
    Cogito ergo sum
  • Ohk, I am going to form the google group. Kindly inbox me your mail ID @vivanna @Marvhartigan @c_alam_ity
    RBI Grade B Manager
  • @madinlove did u ask people from this thread to join the google group?
    Cogito ergo sum
  • @vivanna Till now, I haven't asked anyone but would like to or you can take the initiative.
    RBI Grade B Manager
  • Nice initiative. I'm with economics optional too. Though just started with basics.
  • @insider there is a google group for economics optional econsiasprep. You can also join that for more detailed prep.
    RBI Grade B Manager
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