1. Discuss the main characteristics of money, bonds, credit and equities/stocks in actual ?nancial markets. What is gained and what is lost by having a macroeconomic model with only two ?nancial assets, money and bonds, with the latter including credit and equities?
2. Discuss the sources of imperfections in credit markets and their role in quantity and interest rate rationing.
3. Specify a model of aggregate demand with three ?nancial assets, money, bonds and credit.