Question 1:
Examine the equity price channel for transmission of monetary policy.
Question 2:
Discuss and illustrate out which channel(s) for transmission of monetary policy is (are) likely to be significant for a developing open economy like Mauritius.
Question 3:
Examine the activist and non activist debate, regarding the choice between the policy rule and discretionary monetary policy for policymaker.
Question 4:
Illustrate out why the policy rule isn’t credible and discuss and illustrate out the solutions to overcome the credibility problem
Question 5:
Write concise notes on the following:
• Causes of Inflation.
• Stability of money demand function.
• Inflation Targeting.
• Velocity of circulation of money