Examine the equity price channel for transmission of monetary policy.
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.
Examine the activist and non activist debate, regarding the choice between the policy rule and discretionary monetary policy for policymaker.
Illustrate out why the policy rule isn’t credible and discuss and illustrate out the solutions to overcome the credibility problem
prepare concise notes on the following:
• Causes of Inflation.
• Stability of money demand function.
• Inflation Targeting.
• Velocity of circulation of money