For each of the four essays, carefully summarize and synthesis the major issues. Highlight the key points of your argument. You may use graphs or equations if needed.

Question 1:

Explain the conduct and implementation of monetary policy in any developing country of your choice. Carefully discuss the key primary and secondary targets and suggest if the conduct of monetary policy is per the theory.

Question 2:

Explain any three major issues for monetary policy resulting from the recent GFC. Identify how the CB of any country of your choice has dealt with the situation(s). Explain the lessons learnt for managing future financial crisis and securing financial market in that country.

Question 3:

Justify the movement of interest rate (in alternative directions) resulting from an expansionary monetary policy. Discuss monetary policy transmission through interest rates and explain if monetary policy is effective in any Pacific economy of your choice.

Question 4:

Use the bonds market and money market expositions (side by side) to explain interest rate determination. Discuss how central bank actions may produce a totally different outcome on interest rates than what your diagrams show.