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(a) Analyse the activist and non-activist policy makers' choice between implementing a policy rule or a discretionary monetary policy.
(b) Explain why the policy rule is not credible and discuss the solutions to overcome this problem.
Write detailed notes on any Two of the following:
(a) The equity price channel for transmission of monetary policy.
(b) The credit view.
(c) The causes and persistence of inflation.
(d) Friedman modern quantity theory and its empirical validity.
Think of circumstances at home, at work, at university or into a club to which you belong. This is a situation which involves you. You want to modify the present circumstances and
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#quewhat is production analysis stion..
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New trade theory
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