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QUESTION 1
Critically examine alternative theories of money demand and specify a demand for money equation for Mauritius.
QUESTION 2
Discuss the macroeconomic and microeconomic functions of a central bank making reference to Bank of Mauritius.
QUESTION 3
What are the main objectives and tools of monetary policy in a developing country like Mauritius?
QUESTION 4
Discuss following terms
1 Monetary transmission mechanism
2 Interest rate differentials
3 H-theory of money supply
4 Banking Sector Regulation
Consider the economy (above) again where the following set of stocks is traded: x 1 =(2,2,0) x 2 =(1,0,3) x 3 =(0,2,4) for the prices (p 1 , p 2 , p 3 )=(1, 1, 1).
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