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question 1a discuss the alternative theories of

Question 1:

a. Discuss the alternative theories of money demand.

b. Highlight the impact of financial liberalization on the money demand in a small island developing economy like Mauritius.

Question 2:

a. Explain the meaning of neutrality of money and classical dichotomy.

b. Discuss Patinkin's ( 1965) proof of the existence of inconsistency and invalid dichotomy in a Walrasian general equilibrium model containing a money market .

c. Discuss Patinkin's ( 1965) solution to make the above model determinate and consistent.

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