Question 1:
By using appropriate models critically analyse the following statement: "Money demand for speculative as well as transactional motive is inversely related to interest rates".
Question 1:
(a) Analyse the credit view and discuss its efficiency for the Mauritian economy.
(b) Describe the Equity price channel for the transmission of monetary policy.
Question 3:
"The introduction of money shifts the economy to an efficient and Pareto optimal equilibrium". By Using the Overlapping Generations Model critically analyse the above statement.