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Problem 1:
Using the policy neutrality proposition, Illustrate and determine the effectiveness of applying counter-cyclical monetary policy to stabilise output around its long run value.
Problem 2:
(a) Describe the salient features of the monetary policy as conducted by the Bank of Mauritius since 2006.
(b) Comment on the several measures adopted since 2009 by the Bank of Mauritius to date to address issues pertaining to the global economic crisis including stabilisation of the external value of the Rupee.
Demand Function for Money In the Keynesian analysis , the demand for money is a function of the level of income and the rate of interest. According to Milton Friedman, the dema
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