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problem1. What distinguishes Keynes’ Liquidity preference Framework from the Friedman’s Modern Quantity Theory?

problem2. Evaluate the monetary policy tools which the Central Bank can use to manipulate the money supply and provide the advantages and disadvantages of each.

problem3. describe the traditional interest rate channel of the monetary transmission mechanism.

problem4. Describe the two types of monetary transmission channels proposed by credit view.

problem5. What is the meaning of inflation?

problem6. describe the causes of inflation.

problem7. Describe the link between budget deficits and inflation.

problem8. What are the main assumptions behind the macroeconomic theory of New Classical Economists?

problem9. describe the Lucas Supply function and describe its policy implications?

problem10. Describe the activist/non activist policy debate.

problem11. What is time inconsistency in monetary policy and what are the classical resolutions to this problem?

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