problem 1:

Examine the equity price channel for transmission of monetary policy.

problem 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.

problem 3:

Examine the activist and non activist debate, regarding the choice between the policy rule and discretionary monetary policy for policymaker.

problem 4:

Illustrate out why the policy rule isn’t credible and discuss and illustrate out the solutions to overcome the credibility problem

problem 5:

prepare concise notes on the following:

• Causes of Inflation.

• Stability of money demand function.

• Inflation Targeting.

• Velocity of circulation of money