POE901 | Principles of Economics

The discipline of economics has historically shared a close and intimate relationship with
statecraft and policy making. A large segment of public policy deals with policies related to the
economy – within the larger context of growth, redistribution and development. Thus, it is
important for participants of public policy to understand the basic framework of analysing
economic behaviour of individuals and economic organisations – the government and the market
being the dominant economic organisations. This course introduces participants to the broad
contours of the discipline of economics, its interaction with the state, and some basic concepts
and principles. These principles and concepts are used in public policy, and more specifically in
economic policy making. It also encourages participants to assess these basic concepts and
principles critically in the context of developing countries such as India. The objective is to make
participants aware of the connections between economics and policy, and to be conscious of the
scope and limitations of applying theoretical economic concepts and principles in the practical
field of policy-making.